global supply chain

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pages: 414 words: 101,285

The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do About It by Ian Goldin, Mike Mariathasan

"Robert Solow", air freight, Andrei Shleifer, Asian financial crisis, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bretton Woods, BRICs, business cycle, butterfly effect, clean water, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, connected car, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, discovery of penicillin, diversification, diversified portfolio, Douglas Engelbart, Douglas Engelbart, Edward Lorenz: Chaos theory, energy security, eurozone crisis, failed state, Fellow of the Royal Society, financial deregulation, financial innovation, financial intermediation, fixed income, Gini coefficient, global pandemic, global supply chain, global value chain, global village, income inequality, information asymmetry, Jean Tirole, John Snow's cholera map, Kenneth Rogoff, light touch regulation, Long Term Capital Management, market bubble, mass immigration, megacity, moral hazard, Occupy movement, offshore financial centre, open economy, profit maximization, purchasing power parity, race to the bottom, RAND corporation, regulatory arbitrage, reshoring, Silicon Valley, six sigma, Stuxnet, supply-chain management, The Great Moderation, too big to fail, Toyota Production System, trade liberalization, transaction costs, uranium enrichment

As in the case of the financial sector, we show that the efficiency benefits of globalization have associated risks and that profit-maximizing behavior can create negative externalities. We start by noting the rise of international trade in the twenty-first century. We examine how political changes and technological innovation gave rise to global supply chains. An analysis of “best practices” in supply chain management shows how these supply networks are vulnerable to systemic risk. We then seek to identify ways to make supply networks more resilient. This chapter’s conclusion draws lessons for systemic thinking from supply chain management and considers how the resilience and robustness of the system may be improved. GLOBAL SUPPLY CHAINS We begin by considering the rise of global supply chains in the late twentieth and early twenty-first centuries. We show how political and technological changes shaped global trade and international relations and how supply chain management adapted to suit this new transnational environment.

In a recent survey of international supply chain managers, McKinsey and Company found that product complexity and financial volatility were among the most important determinants of supply chain strategies.48 Their survey also documents that these professionals perceived supply chain risk as being greater in 2008 than in 2006. The risks that executives reported were linked to the difficulty of obtaining accurate information on the state of global supply chains, something that has become more difficult as globalization has made the world more complex. The executives emphasized that substantial resources are required for the management of global supply chains. These findings are consistent with the results from a separate, more extensive survey conducted among three hundred global manufacturing companies by the Massachusetts-based consultancy PRTM.49 The company’s research found that some managers today actually believe that outsourcing is an impediment to competitiveness under certain circumstances as a result of its negative impact on resilience, going against the core of lean management philosophy.

However, the benefits of governments and society ensuring system stability and accordingly sustainable and more predictable economic development in the face of systemic risks far outweigh the costs that may arise from systemic catastrophes. 4 Infrastructure Risks So far we have examined the risks associated with globalization emanating from cross-border flows of finance and physical goods. We have shown that connectivity in both the financial sector and the real economy has increased dramatically in the twenty-first century and that global governance has failed to match the speed of global integration. The resulting governance gap has led to systemic risk in the financial sector and to instability in the global supply chain network. Global supply chains and financial systems operate on the foundation of increasingly sophisticated infrastructure networks. Infrastructure includes the freight and travel networks touched on in chapter 3 but also the world’s energy grid and the information superhighway that has given us the World Wide Web. Infrastructure underlies and provides the framework for the networks we have already examined and thus facilitates the creation and growth of these networks.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

Financial investors in New York and London and the capital pools they deploy in Asia, Swiss and Singaporean commodities brokers and the resource deposits they control in Africa and Latin America, Silicon Valley and Bangalore programmers and their global customers, German and American carmakers and their factories from Mexico to Indonesia—these are all cross-border circuits connected by way of supply chains. It is not countries as a whole that ascend value chains but such circuits of people who are attached to global nodes. Gradually, places such as garment production centers in Dhaka and Addis Ababa begin to feel almost detached from their own country even as they become key drivers of its growth; they belong as much to the global supply chain as to their nation. So synchronized are global supply chains that they serve as a seismograph of our amplified connectivity. Like earthquakes causing equally powerful aftershocks, the financial crisis of 2008 contracted world trade five times more severely than it did world GDP. First the credit crunch created a demand shock, meaning a huge slump in purchases of durable goods. Then the adjustment in inventories cascaded horizontally as the velocity of trade in most goods slowed in unison, shrinking industrial production cycles from Germany and Korea to China.

This trend is playing out around the world from East Africa to Southeast Asia as dynamic new regional federations take shape through common infrastructures and institutions. North America too is growing into a truly united supercontinent. Third, the nature of geopolitical competition is evolving from war over territory to war over connectivity. Competing over connectivity plays out as a tug-of-war over global supply chains, energy markets, industrial production, and the valuable flows of finance, technology, knowledge, and talent. Tug-of-war represents the shift from a war between systems (capitalism versus communism) to a war within one collective supply chain system. While military warfare is a regular threat, tug-of-war is a perpetual reality—to be won by economic master planning rather than military doctrine.

Supply chains are the complete ecosystem of producers, distributors, and vendors that transform raw materials (whether natural resources or ideas) into goods and services delivered to people anywhere.*7 Whether you are awake or asleep, scarcely a moment of our daily lives—sipping morning coffee, driving a car, talking on the phone, sending an email, eating a meal, or going to the movies—doesn’t involve global supply chains. And yet as universal as they are, supply chains are not things in themselves. They are a system of transactions. We do not see supply chains; rather, we see their participants and infrastructures—the things that connect supply to demand. What we can see, however, by tracing supply chains link by link is how these micro-interactions add up to large global shifts. We are witnessing the full consequences of Adam Smith’s free markets, David Ricardo’s comparative advantage, and Émile Durkheim’s division of labor: a world where capital, labor, and production shift to wherever is needed to efficiently connect supply and demand.


pages: 354 words: 92,470

Grave New World: The End of Globalization, the Return of History by Stephen D. King

9 dash line, Admiral Zheng, air freight, Albert Einstein, Asian financial crisis, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Sanders, bilateral investment treaty, bitcoin, blockchain, Bonfire of the Vanities, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collateralized debt obligation, colonial rule, corporate governance, credit crunch, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, debt deflation, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Snowden, eurozone crisis, facts on the ground, failed state, Fall of the Berlin Wall, falling living standards, floating exchange rates, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, global value chain, hydraulic fracturing, Hyman Minsky, imperial preference, income inequality, income per capita, incomplete markets, inflation targeting, information asymmetry, Internet of things, invisible hand, joint-stock company, Kickstarter, Long Term Capital Management, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, moral hazard, Nixon shock, offshore financial centre, oil shock, old age dependency ratio, paradox of thrift, Peace of Westphalia, plutocrats, Plutocrats, price stability, profit maximization, quantitative easing, race to the bottom, rent-seeking, reserve currency, reshoring, rising living standards, Ronald Reagan, Scramble for Africa, Second Machine Age, Skype, South China Sea, special drawing rights, technology bubble, The Great Moderation, The Market for Lemons, the market place, The Rise and Fall of American Growth, trade liberalization, trade route, Washington Consensus, WikiLeaks, Yom Kippur War, zero-sum game

Frattini, ‘The fiscal effects of immigration to the UK’, Economic Journal, 124:580 (2014), pp. 593–643. CHAPTER 9: THE DARK SIDE OF TECHNOLOGY 1.Although it is worth noting that we may be close to reaching the physical limits of miniaturization: quantum mechanics suggests life could become a lot less certain. 2.The phrase ‘mass production’ wasn’t coined until the 1920s. It originally referred to the Ford Motor Company. 3.For a useful summary of the evolution of global supply chains, see R. Baldwin, Global Supply Chains: Why they emerged, why they matter, and where they are going, Centre for Trade and Economic Integration Working Paper CTEI-2012-13, Graduate Institute, Geneva, 2012. 4.Lord Reith, director general of the BBC between 1927 and 1938, was keen to deliver to his audience ‘All that is best in every department of human knowledge, endeavour and achievement … The preservation of a high moral tone is obviously of paramount importance.’ 5.Winston Churchill appeared to thrive on alcohol in ways that would likely be unacceptable today, yet he was rarely criticized.

Where David Ricardo’s comparative advantage applied, countries would have ended up specializing in some areas and exiting from others.10 In other words, there would have been both winners and losers in the US labour market, even if overall economic activity had ended up at a higher level (labour standards across the region would also have ended up higher, one reason why TPP’s demise comes at considerable cost).11 Where global supply chains were formed, specialist production would have been concentrated in some countries, and would have disappeared from others: again, there would have been labour market disruption even if the pie had increased in size. Meanwhile, countries integrated into Asian supply chains that had not signed up to TPP would have found themselves excluded from those supply chains in the future: for them, the playing field would not so much have been levelled, but rather tilted dramatically against them.

Larger and more efficient aeroplanes able to travel vast distances led not only to a dramatic increase in the number of holidaymakers prepared to travel to far-flung places, but also allowed produce from all over the world to appear on our plates, whatever the season. Yet without the information technology revolution, it is difficult to imagine that the world would have experienced anything like the degree of globalization witnessed since the 1980s. At a stroke, the nineteenth-century coordination problem – which led to a concentration of industrial activities in a limited number of areas – was removed. Global supply chains took over. Apple could design its iPhone in California, yet make it in China, courtesy of FoxConn. BMW could build its Minis in Oxford, yet have the engines made in Brazil. JP Morgan could package up US sub-prime mortgages, knowing that the bundles it had assembled could then be distributed to Norwegian pension funds. Distances hadn’t changed, of course, but technology gave the impression that the world was shrinking.


pages: 323 words: 90,868

The Wealth of Humans: Work, Power, and Status in the Twenty-First Century by Ryan Avent

"Robert Solow", 3D printing, Airbnb, American energy revolution, assortative mating, autonomous vehicles, Bakken shale, barriers to entry, basic income, Bernie Sanders, BRICs, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, creative destruction, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, disruptive innovation, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, intangible asset, interchangeable parts, Internet of things, inventory management, invisible hand, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, Marc Andreessen, mass immigration, means of production, new economy, performance metric, pets.com, post-work, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Future of Employment, The Nature of the Firm, The Rise and Fall of American Growth, The Spirit Level, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, uber lyft, very high income, working-age population

New technologies are replacing certain workers, from clerks to welders, and will replace more in the future, from drivers to paralegals. Machines are becoming defter and software is becoming cleverer, and these improvements are increasing the set of human tasks that can be cheaply automated. At the same time, the digital revolution has supercharged a second force: globalization. It would have been nearly impossible for rich Western firms to manage the sprawling global supply chains that wrapped around the world over the last twenty years without powerful information technology. And while China and other emerging markets might have become better integrated in the world economy even without companies such as Apple scattering production across the globe, such growth would have been much slower and less dramatic. Instead, global employment grew by over one billion jobs over the last generation, with most of the growth occurring in emerging economies.11 Workers there are, on the whole, less skilled than those in the rich world, and their incorporation into the global economy has been felt more keenly by workers in middle-skill manufacturing or back-office jobs than by white-collar professionals.

Assembly-line techniques dramatically reduced the cost of goods such as cars and televisions, in the process turning them into basic consumer goods rather than the playthings of the very wealthy. Electrification upended all sorts of industrial processes, and also gave us electric light, telephone calls and rock music. The digital revolution is no exception to this pattern. The web causes hardship for publishers precisely because it is so good for news consumers, who now enjoy access to massive amounts of information at very low cost. The global supply chains enabled by information technology have been hard on some workers but very good for shoppers as a whole, who now enjoy cheaper electronics, clothing and toys as a result. One marvels at the pure, massive consumer surplus generated by something like Wikipedia. When I was a kid, there were still people who would knock on your door to try to sell you encyclopedias, and school essays often needed to be written in a library, where you could easily turn to the Britannica on the shelves or dig through the card catalogue, looking for just the right source.

But property rights have been secure enough to satisfy lots of multinational firms, who have been willing to contract with Chinese companies or invest directly in the Chinese economy. Yet the role of foreign capital points to a second force at work in China’s rise, without which Chinese liberalization would have generated far more meagre returns. Over the last generation, technological change enabled explosive growth in global supply chains. Supply-chain trade has had far-reaching consequences for global development. Success in export markets once required economies to develop an entire suite of capabilities. To export electronics or cars, South Korea and Japan needed to build an entire, high-quality supply chain domestically: they needed lots of firms capable of designing and manufacturing components, and well-organized corporations capable of planning and coordinating the design, production and sale of complex goods.


pages: 518 words: 147,036

The Fissured Workplace by David Weil

accounting loophole / creative accounting, affirmative action, Affordable Care Act / Obamacare, banking crisis, barriers to entry, business cycle, business process, buy and hold, call centre, Carmen Reinhart, Cass Sunstein, Clayton Christensen, clean water, collective bargaining, commoditize, corporate governance, corporate raider, Corrections Corporation of America, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, declining real wages, employer provided health coverage, Frank Levy and Richard Murnane: The New Division of Labor, George Akerlof, global supply chain, global value chain, hiring and firing, income inequality, information asymmetry, intermodal, inventory management, Jane Jacobs, Kenneth Rogoff, law of one price, loss aversion, low skilled workers, minimum wage unemployment, moral hazard, Network effects, new economy, occupational segregation, Paul Samuelson, performance metric, pre–internet, price discrimination, principal–agent problem, Rana Plaza, Richard Florida, Richard Thaler, Ronald Coase, shareholder value, Silicon Valley, statistical model, Steve Jobs, supply-chain management, The Death and Life of Great American Cities, The Nature of the Firm, transaction costs, ultimatum game, union organizing, women in the workforce, yield management

From the beginning of his tenure, Lenny pursued a “value-enhancing strategy” focused on shifting production and related activities away from the company via outsourcing.51 Indicative of this effort, Hershey outsourced elements of production of its chocolate liquor—the chocolate core of products like Kisses—to other companies, leaving only final reassembly steps to its own facilities and workforce. As a further extension of that strategy, the company announced its “global supply chain transformation” in February 2007. The official objective of the three-year program could not be a clearer statement of fissuring as applied to supply chain strategy. “The transformation program will result in a flexible, global supply chain capable of delivering Hershey’s iconic brands, in a wide range of affordable items and assortments across retail channels in the company’s priority markets.”52 The plan entailed further reducing the number of Hershey’s own production lines, “outsourcing production of low value-added items” to other companies, and building a new production facility in Monterrey, Mexico.

This included a more aggressive stance toward the Bakery, Confectionary, Tobacco, and Grainmillers Union, which represents Hershey’s workers. In 2002 the breakdown in negotiations over wages and benefits led to a forty-four-day strike. Although the parties settled the strike, the longer-term effort to reduce jobs continued. 52. See “Hershey Announces Global Supply Chain Transformation,” PR Newswire, February 15, 2007 (http://www.prnewswire.com/news-releases/hershey-announces-global-supply-chain-transformation-57933727.html, accessed July 21, 2012). 53. In addition to corporate documents and contemporaneous accounts, this section is based on Cleeland (2009). 54. Weekly stock price increases outpaced the Dow Jones Industrial Average consistently from 2002 through the first half of 2007. Both Hershey and the Dow Jones tracked downward throughout the depth of the recession from the latter part of 2007 through the beginning of 2010.

Locke, Richard, Matthew Amengual, and Akshay Mangla. 2009. “Virtue out of Necessity? Compliance, Commitment and the Improvement of Labor Conditions in Global Supply Chains.” Politics and Society 27, no. 2: 319–351. Locke, Richard, Greg Distelhorst, Timea Pal, and Hiram Samel. 2012. “Production Goes Global, Standards Stay Local: Private Labor Regulation in the Global Electronics Industry.” MIT Political Science Department Research Paper No. 2012–1. Locke, Richard, Fei Qin, and Alberto Brause. 2007. “Does Monitoring Improve Labor Standards? Lessons from Nike.” Industrial and Labor Relations Review 61, no. 1: 3–31. Locke, Richard, and Monica Romis. 2007. “Improving Work Conditions in a Global Supply Chain.” Sloan Management Review 48, no. 2: 54–62. MacDuffie, John Paul, and Takahiro Fujimoto. 2010. “Why Dinosaurs Will Keep Ruling the Auto Industry: The Complexity Revolution.”


pages: 238 words: 73,824

Makers by Chris Anderson

3D printing, Airbnb, Any sufficiently advanced technology is indistinguishable from magic, Apple II, autonomous vehicles, barriers to entry, Buckminster Fuller, Build a better mousetrap, business process, commoditize, Computer Numeric Control, crowdsourcing, dark matter, David Ricardo: comparative advantage, death of newspapers, dematerialisation, Elon Musk, factory automation, Firefox, future of work, global supply chain, global village, IKEA effect, industrial robot, interchangeable parts, Internet of things, inventory management, James Hargreaves, James Watt: steam engine, Jeff Bezos, job automation, Joseph Schumpeter, Kickstarter, Lean Startup, manufacturing employment, Mark Zuckerberg, means of production, Menlo Park, Network effects, private space industry, profit maximization, QR code, race to the bottom, Richard Feynman, Ronald Coase, Rubik’s Cube, self-driving car, side project, Silicon Valley, Silicon Valley startup, Skype, slashdot, South of Market, San Francisco, spinning jenny, Startup school, stem cell, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, supply-chain management, The Nature of the Firm, The Wealth of Nations by Adam Smith, transaction costs, trickle-down economics, Whole Earth Catalog, X Prize, Y Combinator

In the mid-1800s, Manchester was at its peak. England grew hardly any cotton, but Manchester was called “Cottonopolis.” Bales of raw cotton came in by sea from far-off lands and were transformed by miraculous machines—combing, tight weaving, and precision dyeing—into thread, cloth, and finally clothes. Then those goods were sent off through the same channels to markets around the world. It was a glimpse of the future: global supply chains, competitive advantage, and automation made a once-unremarkable city the center of the global textile trade. Impressive as the new manufacturing machines were, the supply networks that fed them were equally important. Bigger, more efficient factories needed more and cheaper raw materials—not just cotton from Egypt and the Americas, but dyes and silk from Asia and eventually mineral resources such as iron ore and coal.

Manufacturing has now become just another “cloud service” that you can access from Web browsers, using a tiny amount of vast industrial infrastructure as and when you need it. Somebody else runs these factories; we just access them when we need them, much as we can access the huge server farms of Google or Apple to store our photos or process our e-mail. The academic way to put this is that global supply chains have become “scale-free,” able to serve the small as well as the large, the garage inventor and Samsung. The non-academic way to say it is this: nothing is stopping you from making anything. The people now control the means of production. Or, as The Lean Startup author Eric Reis puts it, Marx got it wrong: “It’s not about ownership of the means of production, anymore. It’s about rentership of the means of production.”

People should do only what they do best, he said, and trade with others who make other specialized goods. No one person or town should try to do it all, since a society can do far more collectively with an efficient division of labor—comparative advantage plus trade equals growth. What was good in the eighteenth century is even better in the twenty-first, now that specialists have access to global supply chains for their commodity input materials and global consumer markets for their niche output products. Nearly thirty years ago, two MIT professors, Michael Piore and Charles Sabel, predicted this transition in a book titled The Second Industrial Divide. They argued that the mass-production model that defined twentieth-century manufacturing economies (the “first industrial divide” between people and production) was neither inevitable nor the end of innovation in making things.


pages: 555 words: 80,635

Open: The Progressive Case for Free Trade, Immigration, and Global Capital by Kimberly Clausing

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active measures, Affordable Care Act / Obamacare, agricultural Revolution, battle of ideas, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, corporate social responsibility, creative destruction, currency manipulation / currency intervention, David Ricardo: comparative advantage, Donald Trump, floating exchange rates, full employment, gig economy, global supply chain, global value chain, guest worker program, illegal immigration, immigration reform, income inequality, index fund, investor state dispute settlement, knowledge worker, labor-force participation, low skilled workers, Lyft, manufacturing employment, Mark Zuckerberg, meta analysis, meta-analysis, offshore financial centre, open economy, Paul Samuelson, profit motive, purchasing power parity, race to the bottom, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transfer pricing, uber lyft, winner-take-all economy, working-age population, zero-sum game

Membership expanded from 18 members at inception, to 84 members in 1980, to 164 members today (fig. 2.10).20 Also helping to fuel increasing trade have been falling communication and transportation costs. The greater access to information afforded by computerization and the Internet makes it far easier to do business across borders. Technological changes have also enabled global production processes, by solving the complicated logistical puzzles of global supply chains. Finally, economic growth abroad has also increased international trade flows, which tend to increase with the size of the economy. For the United States and more broadly the world, the importance of trade in the overall economy has grown by about 50 percent relative to its level in 1980. Both then and now, the rest of the world is about twice as globalized as the United States (fig. 2.11).

The higher cost of aircraft parts would make American airplanes more expensive, lowering Boeing’s worldwide market share relative to Airbus. US auto producers would similarly face higher prices for imported auto parts. Apple, Intel, and other globally integrated corporations would also see increased costs due to trade frictions. Further, a US decision to cut imports would negatively affect our nation’s own production, given that many products manufactured abroad draw on global supply chains in which US producers participate as suppliers. For example, in the goods we import from Mexico, a very large share of the value is made up of US content.6 For that matter, it turns out that the US firms who are the biggest exporters are also often the biggest importers. It is difficult to reduce imports without creating collateral damage.7 Figure 3.2: Imports Help the Boeing 787 Fly Reprinted with permission from Reuters Graphics, Thomson Reuters Markets LLC.

Again, it is difficult to truly disentangle these two sources of labor market disruption, especially as international trade and technological change fuel each other. Globalization allows quicker technological diffusion, and competitive forces encourage labor-saving innovation. Technological change enables globalization by lowering communication costs and creating solutions to the logistical puzzles of global supply chains. Figure 4.5: Almost Everywhere, the Manufacturing Share of Employment is Falling Data sources: International Labor Comparisons, US Bureau of Labor Statistics. Monopoly and Excess Profits in the Global Economy As Chapter 2 showed, excess profits also play an important role in this story of workers’ woes. When entrepreneurs make risky and ingenious innovations, some get lucky and receive enormous returns.


pages: 266 words: 80,273

Covid-19: The Pandemic That Never Should Have Happened and How to Stop the Next One by Debora MacKenzie

anti-globalists, butterfly effect, coronavirus, COVID-19, Covid-19, creative destruction, crowdsourcing, dark matter, Donald Trump, European colonialism, gig economy, global supply chain, income inequality, Just-in-time delivery, megacity, meta analysis, meta-analysis, microcredit, planetary scale, reshoring, supply-chain management, uranium enrichment

I can think of few better illustrations of how we knew this was coming. Let me emphasize that this was a total coincidence: this was a “what if” scenario playing out in a computer model of US society, featuring a made-up virus. They chose a coronavirus for the simulation partly to show how disruptive even a relatively mild virus can be. They succeeded. The result of the simulation was what we are living out now: overwhelmed health care, disrupted global supply chains, needless death, economic dislocation. And a table full of officials from government and industry sitting there saying, If this were to happen, there’s not much my sector/department/office could do. And the people who wrote that simulation were going easy on the officials—maybe so they’d sit through the entire afternoon and not be so horrified they’d quietly slip out at the coffee break, trying to forget what they’d seen.

Connections between villages might mean one comes to the other’s aid in an attack. But as the villages become more tightly coupled, both may suffer when one is attacked. A loose network absorbs shock; a tightly coupled one transmits it. That is happening in the Covid-19 pandemic. Countries go into lockdown; people stop shopping, traveling, and producing; and the effects ricochet through a tightly coupled global economy. The global supply chains of money, materials, people, energy, and component parts that underpin industries falter and break. Airlines go under as they are not set up to weather even a temporary disappearance of travelers. Malaria worsens in Africa as insecticide and antimalarial bed net deliveries falter. Microcredit that underpins small businesses throughout the developing world defaults because payment collectors are locked down, causing ramifications throughout an economy.

Today, we all depend even more on just-in-time deliveries: if the trucks stop because drivers are locked down, or sick, or dead, or caring for sick family, cities will rapidly have no food, vehicles won’t have fuel, food in depots will rot. In the future, if deliveries depend more on automated systems, trucking may not remain as vulnerable—but the principle remains that if certain hub industries are paralyzed by loss of people, the impact can be far-reaching. There will be other choke points that depend on people: doctors and nurses, engineers who run power grids or essential manufacturing, or global supply chain managers are not all readily replaced. Even transient absences of key workers can cause snowballing problems. During Covid-19 lockdowns, oil refineries are shutting due to plummeting demand as air and road traffic fall. In a pandemic with a high loss of people, absence of workers at oil refineries starts becoming a problem. The current UK pandemic guidance for the natural gas industry predicts that anything more than staff absences up to 30 percent for a month “would be problematic,” whereas an absence rate of 45 percent—or possibly less during peak demand in winter—could trigger a Gas Deficit Emergency, with some users, like factories and homes, shut down.


pages: 477 words: 135,607

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson

"Robert Solow", air freight, anti-communist, barriers to entry, Bay Area Rapid Transit, British Empire, business cycle, call centre, collective bargaining, conceptual framework, David Ricardo: comparative advantage, deindustrialization, deskilling, Edward Glaeser, Erik Brynjolfsson, full employment, global supply chain, intermodal, Isaac Newton, job automation, Jones Act, knowledge economy, Malcom McLean invented shipping containers, manufacturing employment, Network effects, New Economic Geography, new economy, oil shock, Panamax, Port of Oakland, post-Panamax, Productivity paradox, refrigerator car, South China Sea, trade route, Works Progress Administration, Yom Kippur War, zero-sum game

A country cursed with outmoded or badly run ports is a country that faces great obstacles to finding a larger role in the world economy. If Peru were as effective at port management as Australia, the World Bank estimated, that alone would increase its foreign trade by one-quarter. If it cannot be, it will receive the maritime equivalent of branchline service on a single-track railway. The big containerships that link national economies in the global supply chain, carrying nothing but stacks of metal boxes, will pass it by.16 Global supply chains were not in anyone’s mind in the spring of 1956. Over the next half century, freight transportation developed in ways that could not have been imagined by the dignitaries watching the Ideal-X take on those first containers at Port Newark. Perhaps the most remarkable fact about the remarkable history of the box is that time and again, even the most knowledgeable experts misjudged the course of events.

A few years later it added a plant in Taiwan, along with a large cadre of Taiwanese women who sewed Barbie’s clothes in their homes. By the middle of the 1990s, Barbie’s citizenship had become even less distinct. Workers in China produced her statuesque figure, using molds from the United States and other machines from Japan and Europe. Her nylon hair was Japanese, the plastic in her body from Taiwan, the pigments American, the cotton clothing from China. Barbie, simple girl though she is, had developed her very own global supply chain.1 Supply chains like Barbie’s are a direct result of the changes wrought by the rise of container shipping. They were unheard-of back in 1956, when Malcom McLean placed his first containers on board the Ideal-X, and in 1976, when high oil prices brought sky-high freight costs that stifled the flow of world trade. Until then, vertical integration was the norm in manufacturing: a company would obtain raw materials, sometimes from its own mines or oil wells; move them to its factories, sometimes with its own trucks or ships or railroad; and put them through a series of processes to turn them into finished products.

With modern communications and container shipping, the retailer could design its own shirts and transmit the designs to a factory in Thailand, which used local labor to combine Chinese fabric made from American cotton, Malaysian buttons made from Taiwanese plastics, Japanese zippers, and decorations embroidered in Indonesia. The finished order, loaded into a 40-foot container, would be delivered in less than a month to a distribution center in Tennessee or a hyper marché in France. Global supply chains became so routine that in September 2001, when U.S. customs authorities stepped up border inspections following the terrorist attack that destroyed the World Trade Center in New York, auto plants in Michigan began shutting down within three days for lack of imported parts. The improvement in logistics shows up statistically in reduced inventory levels. Inventories are a cost: whoever owns them has had to pay for them but has yet to receive money from selling them.


pages: 128 words: 38,187

The New Prophets of Capital by Nicole Aschoff

3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, American Legislative Exchange Council, basic income, Bretton Woods, clean water, collective bargaining, commoditize, crony capitalism, feminist movement, follow your passion, Food sovereignty, glass ceiling, global supply chain, global value chain, helicopter parent, hiring and firing, income inequality, Khan Academy, late capitalism, Lyft, Mark Zuckerberg, mass incarceration, means of production, performance metric, post-work, profit motive, rent-seeking, Ronald Reagan, Rosa Parks, school vouchers, shareholder value, sharing economy, Silicon Valley, Slavoj Žižek, structural adjustment programs, Tim Cook: Apple, urban renewal, women in the workforce, working poor, zero-sum game

Global and grassroots environmental groups focused their energies on getting states, networks of states, and intergovernmental bodies like the United Nations to implement restrictions to stop companies from dumping toxic waste in streams and rivers, clear-cutting forests, and belching exhaust into the atmosphere. Over the past decade and a half, this state-centered focus has shifted to a consumer-centered focus as fears stoked by globalization have changed the frame of environmentalism. In the age of global supply chains, free trade agreements, and capital flight, states have increasingly come to be seen as incapable of protecting their citizens from big global problems like ozone depletion, climate change, and biodiversity loss, and even more tractable problems, like controlling hazardous waste flows or regulating toxic substances in consumer goods.14 But while processes of globalization have delegitimized states and made citizens feel disconnected from the protective embrace of their respective governments, they have also helped to forge new, global identities based on feelings of “world-citizenship.”15 Westerners in particular have become uneasily aware of their power as consumers in shaping and driving global value chains.

States, aside from the big players, appear weaker than ever (with less autonomy, power, authority), and their ability to tell corporations what to do is limited by their need for economic development and their membership in international bodies like the World Trade Organization that explicitly prohibit most environmental restrictions. On the flip side, transnational corporations are stronger than ever. One giant company, like Unilever or Walmart, affects millions of people around the world every day through its global supply chains. Free markets don’t exist, but maybe corporations are still the best, most sensible, way to heal the planet. They have reach, influence, and an unrivaled ability to coordinate action quickly. In Mackey’s story an enlightened corporation with a positive mission that honors all its stakeholders can heal the planet. He says that a company can create a virtuous cycle of production and consumption that will stand the test of time if it treats its suppliers, its workers, and its community and the environment right.

The probusiness environmental message of the 1987 Brundtland Report, in combination with the weakened power of states to control the actions of corporations, have pushed big environmental NGOs to change their stance toward corporations over the past decade and to focus on the marketplace as the most viable lever of change.32 As Gerald Butts, CEO of World Wildlife Fund Canada, explains about WWF’s decision to partner with Coca-Cola: We could spend fifty years lobbying seventy-five national governments to change the regulatory framework for the way these commodities are grown and produced. Or these folks at Coke could make a decision that they’re not going to purchase anything that isn’t grown or produced in a certain way—and the whole global supply chain changes overnight.33 Big environmental groups may criticize neoliberalism and transnational corporations, but these days their strategic agendas look very similar to those of companies like Whole Foods and Walmart. The state is viewed as a suspect, ineffective force, while the firm becomes the key vehicle for change. In light of these global trends, doesn’t it make sense to expand eco-business practices and scale up the Whole Foods model?


pages: 327 words: 90,542

The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril by Satyajit Das

"Robert Solow", 9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Albert Einstein, Alfred Russel Wallace, Anton Chekhov, Asian financial crisis, banking crisis, Berlin Wall, bitcoin, Bretton Woods, BRICs, British Empire, business cycle, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, disintermediation, disruptive innovation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, happiness index / gross national happiness, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, light touch regulation, liquidity trap, Long Term Capital Management, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, Mikhail Gorbachev, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, passive income, peak oil, peer-to-peer lending, pension reform, plutocrats, Plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Ronald Reagan, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, uber lyft, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game

By the nineteenth century, England, Spain, Portugal, the Netherlands, Italy, France, and Germany had established major colonies in Asia, Africa, and the Americas, built upon what English naturalist Alfred Russel Wallace termed “the unblushing selfishness of the greatest civilized nations.”1 The objective was to strengthen economic and political power by controlling key resources and strategic trading routes, and to deny these advantages to sovereign rivals. Over time, the colonies came to resemble modern global supply chains. In a thoroughly contemporary twist, Britain even outsourced the management of its colonies to private interests, the British East India Company. Colonialism provided access to low-cost raw materials, fueling the growth and prosperity of the Old World. It provided cheap labor, often in the form of slaves, and new markets for the products of the colonial powers. Portuguese explorer Vasco da Gama was exultant at being able to buy pepper from indigenous traders in the East Indies for 3 ducats a hundredweight, knowing it would fetch 80 ducats in Venice.

One-off events were important. The Y2K software problems fueled the development of India's software industry. The new economy was centered on China, now the world's factory, exporting around 50 percent of its output. It imported resources and parts that were then assembled or processed and shipped out again. Smaller emerging economies, especially in Asia, became integrated into new Sino-centric global supply chains. Consultant David Rothkopf highlighted the uneven balance of power within emerging markets: “Without China, the BRICs are just the BRI, a bland, soft cheese that is primarily known for the whine [sic] that goes with it…”8 China was now the largest purchaser of iron ore and other metals, and one of the biggest purchasers of cotton and soybeans. It produced more than half the world's steel and cement.

The additional earnings were not related to the creation of genuine value or increased productivity. They were the result of greater risk-taking, underwritten by the government, in institutions that were seen as too big or too important to fail. In effect, they were the beneficiaries of large, hidden transfers from other parts of society. Increased international trade, improvements in transport and information technology, and the development of global supply chains further altered the structure of labor markets, increasing inequality. Businesses in developed economies lowered costs by outsourcing labor-intensive production to low-cost locations, retaining the more profitable operations requiring higher skills. This allowed the firms to increase their earnings at the expense of workers. Cheaper goods and services and increased consumer choice came at the cost of displaced workers in developed countries.


pages: 233 words: 67,596

Competing on Analytics: The New Science of Winning by Thomas H. Davenport, Jeanne G. Harris

always be closing, big data - Walmart - Pop Tarts, business intelligence, business process, call centre, commoditize, data acquisition, digital map, en.wikipedia.org, global supply chain, high net worth, if you build it, they will come, intangible asset, inventory management, iterative process, Jeff Bezos, job satisfaction, knapsack problem, late fees, linear programming, Moneyball by Michael Lewis explains big data, Netflix Prize, new economy, performance metric, personalized medicine, quantitative hedge fund, quantitative trading / quantitative finance, recommendation engine, RFID, search inside the book, shareholder value, six sigma, statistical model, supply-chain management, text mining, the scientific method, traveling salesman, yield management

The company was expecting, one might say, champagne skills on a beer-skills budget. At a polymer chemicals company, many of the company’s products had become commoditized. Executives believed that it was important to optimize the global supply chain to squeeze maximum value and cost out of it. The complexity of the unit’s supply chain had significantly increased over the previous couple of years. Responding to the increased complexity, the organization created a global supply chain organization, members of which were responsible for the movement of products and supplies around the world. In the new organization, someone was responsible for the global supply chain, there were planning groups in the regions, and then planners in the different sites. The greatest challenge in the supply chain, however, involved the people who did the work. The new roles were more complex and required a higher degree of analytical sophistication.

Amazon.com’s business model, in contrast, requires the company to manage a constant flow of new products, suppliers, customers, and promotions, as well as deliver orders directly to its customers by promised dates. With one of the most complex supply chain problems in business, Amazon.com recruited Gang Yu, a professor of management science and a software entrepreneur who is one of the world’s leading authorities on optimization analytics, as the head of its global supply chain. Yu and his team began by integrating all the elements of their supply chain in order to coordinate supplier sourcing decisions. To determine the optimal sourcing strategy (determining the right mix of joint replenishment, coordinated replenishment, and single sourcing) as well as manage all the logistics to get a product from manufacturer to customer, Amazon.com applies advanced optimization and supply chain management methodologies and techniques across its fulfillment, capacity expansion, inventory management, procurement, and logistics functions.


pages: 400 words: 88,647

Frugal Innovation: How to Do Better With Less by Jaideep Prabhu Navi Radjou

3D printing, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Albert Einstein, barriers to entry, Baxter: Rethink Robotics, Bretton Woods, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cloud computing, collaborative consumption, collaborative economy, Computer Numeric Control, connected car, corporate social responsibility, creative destruction, crowdsourcing, disruptive innovation, Elon Musk, financial exclusion, financial innovation, global supply chain, IKEA effect, income inequality, industrial robot, intangible asset, Internet of things, job satisfaction, Khan Academy, Kickstarter, late fees, Lean Startup, low cost airline, low cost carrier, M-Pesa, Mahatma Gandhi, megacity, minimum viable product, more computing power than Apollo, new economy, payday loans, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, precision agriculture, race to the bottom, reshoring, risk tolerance, Ronald Coase, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, six sigma, smart grid, smart meter, software as a service, standardized shipping container, Steve Jobs, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, transaction costs, Travis Kalanick, unbanked and underbanked, underbanked, women in the workforce, X Prize, yield management, Zipcar

Bayer Technology Services, which is part of Bayer, is leading a consortium of 25 corporate and academic partners from nine European countries to accelerate the development and adoption of modular F3 factories in the chemical industry. Adapt R&D R&D engineers also need to take full advantage of digitised and flexible supply chain assets and processes when designing products. Three conditions should be in place: Products must be factory-agnostic; in other words, it should be possible to produce them in any factory in the manufacturer’s global supply chain. For instance, John Deere, a US agricultural and construction machinery manufacturer, has an operating model, Design Anywhere Build Anywhere (DABA), which allows it to shift production quickly and seamlessly from one factory to another, depending on relative capacity. R&D should use fewer, more standard components so they can be assembled faster on the shop floor. R&D should adopt techniques such as modular design and design for postponement so that products can be mass customised cost-effectively, either at the factory or at the point of distribution (or, even better, at the point of consumption).

One successful example is La Ruche qui dit Oui (The Hive that says Yes), a French online marketplace for local, sustainable food producers targeting mainstream consumers. La Ruche’s nationwide network of over 500 “hives” brings together a critical mass of local customers, giving them direct access to locally produced fresh, seasonal and ecofriendly foods. By cutting out the middleman, La Ruche’s network connects 50,000 members directly to over 2,500 small farmers. Large corporations and big-box retailers run global supply chains that deliver economies of scale that are increasingly unsustainable (such as selling bananas all year around). Collective buying platforms, by contrast, focus on large-scale localisation by supporting small-circuit supply chains that reduce time and distance between production and consumption, and are thus more sustainable environmentally, financially and socio-economically. Crowdfunding platforms that finance new ventures Platforms like Kickstarter, Indiegogo or KissKissBankBank enable lone inventors to raise funds to start and scale up an enterprise.

., Caterpillar to Expand Manufacturing and Increase Employment in the United States with New Hydraulic Excavator Facility in Victoria, Texas, Caterpillar press release, August 12th 2010. 7Wong, H., Potter, A. and Naim, M., “Evaluation of postponement in the soluble coffee supply chain: A case study”, International Journal of Production Economics, Vol. 131, Issue 1, May 2011, pp. 355–64. 8O’Marah, K., chief content officer, SCM World, and senior research fellow at Stanford Global Supply Chain Management Forum, interview with Navi Radjou, March 11th 2014. 9Beasty, C., “The Chain Gang”, Destination CRM, October 2007. 10Morieux, Y., “As work gets more complex, 6 rules to simplify”, TED Talk, October 2013. 11Lopez, M., CEO, Lopez Research, interview with Navi Radjou, March 28th 2014. 12O’Connell, A., “Lego CEO Jørgen Vig Knudstorp on leading through survival and growth”, Harvard Business Review, January 2009. 13“The Return to Apple”, All About Steve Jobs: http://allaboutstevejobs.com/bio/longbio/longbio_08.php. 14O’Connell, op. cit. 15Francis, S., CEO, Flock Associates, and former head of Aegis Europe, interview with Jaideep Prabhu, January 27th 2014. 16This case study is adapted from an original version that appeared in French in L’Innovation Jugaad, published by Diateino in 2013.


pages: 307 words: 92,165

Fabricated: The New World of 3D Printing by Hod Lipson, Melba Kurman

3D printing, a long time ago in a galaxy far, far away, additive manufacturing, barriers to entry, Berlin Wall, carbon footprint, cloud computing, crowdsourcing, dumpster diving, en.wikipedia.org, factory automation, game design, global supply chain, invisible hand, James Watt: steam engine, Jeff Bezos, Kickstarter, Lean Startup, lifelogging, Mars Rover, Marshall McLuhan, microcredit, Minecraft, new economy, off grid, personalized medicine, Ray Kurzweil, Richard Feynman, stem cell, Steve Jobs, technological singularity, the market place

Cutting links from the supply chain Many people, weaned on images of toxin-spewing factories, don’t realize that perhaps more devastating than factory pollution is the slow burn of fossil fuels consumed by supply chains. The process of moving materials and parts around the world generates large amounts of pollution. Wal-Mart estimates that about 80 percent of its corporate carbon footprint is generated by its vast and global network of suppliers. Global supply chains move raw materials to the factory, then to the assembly line, and finally, to the last stop, the consumer. All of us rely on the flow of global supply chains. Nearly every mass produced object we live with, purchase, consume and throw away—from the most humble plastic toy to the medical device that saves lives in surgery—is the product of a long and winding supply chain. Supply chains have a huge carbon footprint because of fuel emissions from industrial armies of trucks, planes, and ships that move things from place to place.

Some jobs will disappear while entirely new professions will emerge. Fortunately, the student seemed satisfied with my answer, but his question made me wonder what his generation will witness in their lifetimes. Today 3D printing is already becoming a mainstream tool in industries such as aerospace engineering where product lines involve small batches of complex parts. In the future 3D printing will disrupt the economy in more profound ways. Global supply chains will be replaced by agile and independent small manufacturers able to respond quickly to fluctuating inventories and market demands. Less directly, perhaps the biggest contribution of 3D printing technologies to the economy will be to reduce the risk and friction associated with trying out new business models. Like ants with factories One future business model enabled by 3D printing and new design technologies will be cloud manufacturing.

In contrast, traditional metal manufacturing (grinding, machining or molding) processes are more environmentally wasteful. Some metal manufacturing methods leave 90 percent of the raw metal behind in waste byproduct. For example, it can take up to 15 kilograms of raw metal to make a 1 kilogram airplane part.4 Since their goal was to study the carbon footprint generated over an entire product lifecycle, researchers studied the downstream impact of 3D printing on the global supply chain. Manufacturing could be greened if companies used digital inventory and local, just-in-time production—a de-centralized manufacturing model that 3D printing is ideally suited for. The Atkins Study concluded that “The application of AM for suitable parts and components, especially those that are of low volume but high value, can result in a significant reduction in stock costs and inventory levels.”


pages: 239 words: 62,311

The Next Factory of the World: How Chinese Investment Is Reshaping Africa by Irene Yuan Sun

barriers to entry, Bretton Woods, capital controls, clean water, Computer Numeric Control, deindustrialization, demographic dividend, Deng Xiaoping, Donald Trump, European colonialism, floating exchange rates, full employment, global supply chain, invisible hand, job automation, low skilled workers, M-Pesa, manufacturing employment, means of production, mobile money, post-industrial society, profit motive, purchasing power parity, race to the bottom, RAND corporation, Ronald Reagan, Shenzhen was a fishing village, Silicon Valley, Skype, special economic zone, structural adjustment programs, Triangle Shirtwaist Factory, union organizing, Washington Consensus, working-age population

Landlocked and completely surrounded by its much larger neighbor, South Africa, it has few natural resources and a population of only 2 million. With these scare resources, it has to contend with the third-highest rate of HIV infection in the world.9 But even here, Chinese factories have found a niche due to Lesotho’s favorable position under US trade policy. As a result, Lesotho has become a link in the global supply chain that churns out the yoga pants and T-shirts ubiquitous in the United States. A world apart from both Nigeria and Lesotho, Kenya is the flagship economy of East Africa, boasting its own brand of entrepreneurship and innovation. Although youth unemployment has been worrisome and security concerns about neighboring Somalia lurk, Kenya’s GDP has grown consistently at a robust 5–6 percent a year over the past five years, and its burgeoning tech sector has earned Nairobi the moniker “Silicon Savannah.”

That year alone, 14,000 out of 50,000 garment workers lost their jobs as factory after factory shuttered its doors.2 If such an event were to repeat itself today, Mrs. Shen would have little room to maneuver—her factory’s small size and the lack of pricing power that clothing contractors command mean that she would be unable to raise prices in order to maintain margins. Indeed, the clothing industry is now dominated by a global supply chain within which Mrs. Shen’s factory is but one small link. Designs are made by retailers in the United States, Europe, and other developed countries. These are the brand names we’ve all heard of—Levi’s, Kohl’s, Reebok, Walmart. Those retailers go to a few giant sourcing firms (one expert I spoke to called them Big Sourcing), located mainly in Hong Kong and Taiwan, to get an agreement to have their designs made by a specified date and at a specified price.

See also labor-intensive production cardboard box factory, 89–91 cash flow, 118 celadon, 21 Central Bank of Kenya, 144, 145 Central Bank of Lesotho, 68 Chang, Leslie, 100 Chaplin, Charlie, 100–101 Chen, Jennifer, 62–63, 115–116, 126 China African exports to, 109–110 African factories of, 5–8 economic development in, 18–19, 21, 161–163 economic slowing in and African industrialization, 171–172 Four Great Families in Nigeria from, 34–35 GDP in, 2–3, 29–30 governance and governance development in, 129–134, 147 government aid to Africa, 179n7 Great Leap Forward, 28 immigration to Africa from, 32, 167–169, 181n1 industrialization of, 1–3 investment in Africa, 42–44 labor costs in, 92 match between Africa and, 167–168 migrants from, 123–127 negative effects of factories in, 8 outward turning by, 173–177 pharmaceutical industry, 161–163 plastic wrap in, 28–29 poverty in, 180n10 size of economy in, 179n2 textiles smuggled from, 40–41 China Road and Bridge Corporation, 175–177 Clinton, Hillary Rodham, 129 clothing manufacturing automation in, 172 competition among, 71–72 failure rates in, 114–115 global supply chain and, 55–57 infrastructure and, 62–63 labor requirements of, 54–57 in Lesotho, 7, 49–50, 53–54, 67–69, 71–72 local ownership of factories in, 113–119, 188n5 partnerships in, 114–117 textiles vs., 52 unions in, 102–105 See also textile manufacturing Coca-Cola, 138 colonialism, 129 commitment, personal, 32–33, 45–47, 70–71, 85, 167–169 commodity prices, 65 competitor sets, 52–53 corruption, 7–8, 74, 130 in manufacturing, 74–81 in Nigeria, 39, 40–41, 63, 75–78, 136–140 Corruption Perceptions Index, 77 Côte d’Ivoire, 120 cultural differences, 97–98 customers, 52–54, 65 Dangote, Aliko, 10 demand, changes in, 65 demographics, 92–94, 181n11, 190n14 Deng Xiaoping, 29–30, 175 Department for International Development, UK, 82, 154 diversity, 51–54 Doctors Without Borders, 158–159 donor fatigue, 158–159 Dutch disease, 36 East Asian miracle, 29 Ebola virus, 158 economic development, 106–107 bootstrapping, 132–136, 147–148, 165–166 China, 18–19, 28, 29–30 East Asia, 29 education and, 4–5 endowment theory of, 9–10, 135–136 flying geese theory and, 27–29 future of, 174–177 industrialization and, 12–13, 20 leapfrogging, 22 overconfidence for, 165–166 Washington Consensus on, 20–22 education, 4–5, 30, 95–96 worker skills training, 129–134, 148–150 Edwards, Lawrence, 57 efficiency, 46–47, 71–72, 118 employment, 43–44, 89–107 benefits of manufacturing, 94–96 cultural differences and, 96–98 difficulty of factory, 91, 100–101 fluctuations in, 57, 64 full, 91, 93 informal sector, 94 labor- vs. capital-intensive production and, 51, 52 learning manufacturing through, 17–19, 23–26, 89–91 of locals vs. expatriates, 57, 92–93, 184n5 stability in, 60–61, 64 of youth, 130 enabling context, 135 endowment theory of development, 9–10, 135–136 environmental issues, 7–8, 70, 74, 75, 81, 175–177 ethics issues, 159–160 Ethiopia, 11, 73 factory ownership in, 113 local ownership in, 120–123 pharmaceutical industry, 121–123, 156–157, 163–169 Eubank, Nicholas, 140–141 European Union, 53–54 exchange rates, 36–37, 54, 56, 65 FAW, 2, 5–6, 12 flexibility, 146–148 flip-flops, 46–47, 63 flying geese theory, 9, 23–30, 93, 112–113 Fokuo, Isaac, 129–132 Ford Foundation, 82 foreign investment, 33–34, 42–44, 73–74 Formosa denim mill, 57–61, 64, 184n6 Forum on China-Africa Cooperation, 137 Four Asian Tigers, 29 Frederick, Kenneth, 79–81 French, Howard, 97 Gap, Inc., 117 Gates Foundation, 154 GDP from African manufacturing, 41 China, 2–3, 29–30 Ghana, 41 Lesotho, 62, 184n13 manufacturing and increased, 26–27 Nigeria, 36, 62 gel capsules, 121–123 Germany, pharmaceutical industry in, 156, 192n12 Gerschenkron, Alexander, 99 Ghana, 41 GlaxoSmithKline (GSK), 166, 167, 194n37 global competition, 37–39, 40–41, 70, 71–74 Global Corruption Barometer, 137 Global Fund, 154, 159 Goodall, Jane, 129 governance, 22, 82 bootstrapping development and, 132–136 good enough, 129–150 improving through using, 136–142 innovation and, 142–148 Nigerian customs agency and, 136–140 prevailing views on, 134–136 government development of with industrialization, 82–84 enforcement capacity and, 79–81 export-oriented manufacturing and, 63–64 loans, 65 Nigerian textile manufacturing and, 35, 37–39, 53 pharmaceutical industry and, 164–165 regulatory systems, 70, 74–75 in shaping manufacturing sectors, 65–66 Washington Consensus on, 20 Gu, Barry, 67–69, 84–85 Han, Jason, 138–140 hardships, willingness to endure, 167–168.


pages: 460 words: 131,579

Masters of Management: How the Business Gurus and Their Ideas Have Changed the World—for Better and for Worse by Adrian Wooldridge

affirmative action, barriers to entry, Black Swan, blood diamonds, borderless world, business climate, business cycle, business intelligence, business process, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collaborative consumption, collapse of Lehman Brothers, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, creative destruction, credit crunch, crowdsourcing, David Brooks, David Ricardo: comparative advantage, disintermediation, disruptive innovation, don't be evil, Donald Trump, Edward Glaeser, Exxon Valdez, financial deregulation, Frederick Winslow Taylor, future of work, George Gilder, global supply chain, industrial cluster, intangible asset, job satisfaction, job-hopping, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kickstarter, knowledge economy, knowledge worker, lake wobegon effect, Long Term Capital Management, low skilled workers, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, Naomi Klein, Netflix Prize, Network effects, new economy, Nick Leeson, Norman Macrae, patent troll, Ponzi scheme, popular capitalism, post-industrial society, profit motive, purchasing power parity, Ralph Nader, recommendation engine, Richard Florida, Richard Thaler, risk tolerance, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Levy, supply-chain management, technoutopianism, The Wealth of Nations by Adam Smith, Thomas Davenport, Tony Hsieh, too big to fail, wealth creators, women in the workforce, young professional, Zipcar

Once again, Friedman did not pull any rabbits out of a hat: America had been abuzz with talk of the outsourcing of service jobs long before he published his book. But once again he produced compelling reporting and vivid phrases (though the trope about the flattening of the world became a little tiresome). He was one of the first Western journalists to write extensively about companies such as Infosys (he came up with the book’s title during a brainstorming session with one of the company’s founders, Nandan Nilekani). He grasped the importance of global supply chains as well as global communications—and produced fascinating accounts of the internal operations of companies such as Walmart and UPS to illustrate his point. And once again Friedman acted like an enthusiastic tour guide to the future, introducing us to the companies that are inventing the future and giving us a few minutes of face time with the new masters of the universe. If Friedman is the king of the journo-gurus, then Malcolm Gladwell is the crown prince, more glamorous than his elder competitor and arguably even more popular.

In The Next American Frontier (1983) he blamed America’s economic woes on its “paper entrepreneurialism”—its preference for financial gamesmanship over making and improving things—and called for more protectionism. But then he produced a series of articles and books that challenged the left to rethink some of its basic assumptions. In “Who Are We?” he demolished the case for protectionism in a world of global supply chains. What does it mean to protect the “American” car industry when the components of the average car are made all around the world? In The Work of Nations (1991) he argued that a country’s competitiveness depends on its human capital—on the education and skills of its population—rather than on the profitability of the companies that happen to have their headquarters within its borders. The United States had embraced a “new economy” based on high value rather than high volume and on customization rather than standardization, he argued, in phrases that have resounded through his later work, and companies had been transformed from nation-bound pyramids into world-spanning networks.

Bosses in New York, London, and Paris would control the process from their glass towers, and Western consumers would reap most of the benefits. This is changing fast. Muscular emerging-market champions such as India’s ArcelorMittal in steel and Mexico’s Bimbo in baked goods are gobbling up Western companies. Brainy ones such as Infosys and Wipro are taking over office work. And consumers in developing countries are getting richer faster than their equivalents in the West. In some cases the traditional global supply chain is being reversed: Embraer buys many of its component parts from the West and does the high-value-added work in Brazil. Old assumptions about innovation are also being challenged. People in the West like to believe that their companies cook up new ideas in their laboratories at home and then export them to the developing world, which makes it easier to accept job losses in manufacturing.


pages: 363 words: 101,082

Earth Wars: The Battle for Global Resources by Geoff Hiscock

Admiral Zheng, Asian financial crisis, Bakken shale, Bernie Madoff, BRICs, butterfly effect, clean water, cleantech, corporate governance, demographic dividend, Deng Xiaoping, Edward Lorenz: Chaos theory, energy security, energy transition, eurozone crisis, Exxon Valdez, flex fuel, global rebalancing, global supply chain, hydraulic fracturing, Long Term Capital Management, Malacca Straits, Masdar, mass immigration, megacity, Menlo Park, Mohammed Bouazizi, new economy, oil shale / tar sands, oil shock, Panamax, Pearl River Delta, purchasing power parity, Ralph Waldo Emerson, RAND corporation, Shenzhen was a fishing village, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, spice trade, trade route, uranium enrichment, urban decay, WikiLeaks, working-age population, Yom Kippur War

When Molycorp hits its stride at the end of 2012, it expects to be processing 20,000 tonnes a year of oxide, in what it calls its “mines to magnets” strategy. Molycorp also owns a rare-earth processing facility in Estonia, one of only two such plants in Europe. The United States is keen to see a steady supply of strategically critical materials coming from its own mines or from friendly nations. “Diversified global supply chains and multiple sources of materials are required to manage supply risk,” the Department of Energy noted in its December 2010 report. “This means taking steps to facilitate extraction, refining and manufacturing here in the United States, as well as encouraging additional supplies around the world.”2 Industry expert Jack Lifton of Technology Metals Research says that whatever actions the United States takes, the focus must be on the security of the U.S. supply chain for rare earths, and their availability.

It is the main supplier for a variety of rare-earth elements and other scarce metals such as antimony, tungsten, mercury, carbon (graphite), and bismuth.1 That gives it enormous weight in any discussion of what happens next. The United States, Europe, Japan, and India are all big consumers of various commodities and in some cases—such as coal, conventional oil and shale oil/gas in the United States, and coal in India—have substantial supply capacity. But none will dominate global supply chains in the way that China seems likely to do, over the next 20 years. This presupposes, of course, that there is no social implosion in China that leads to a splintering of the country into coastal, hinterland, northern or southern empires. The major long-term task of the expected new team of Xi Jinping and Li Keqiang when they take over as president and premier in 2012–2013 will be to manage continued high economic growth without any further breakdown in social harmony.

Expansion of the Pilbara iron ore region in Western Australia, where BHP Billiton, Rio Tinto, Fortescue Metals Group, and Hancock Prospecting could lift combined output to almost 1 billion tonnes a year by 2020. Chinese and Japanese groups are major investors. 17. The Mount Weld rare earths mine, Western Australia. Along with Molycorp of the United States, Lynas Corp. is considered the most likely of the many rare earth miners outside China to get finished product into the global supply chain. 18. The brine-based lithium deposits of the “Lithium Triangle,” where Bolivia, Chile, and Argentina meet. Salar de Atacama in Chile is the most productive salt pan, but Bolivia has high hopes for its Salar de Uyuni. 19. The Belo Monte dam in Brazil, due for completion after 2015. Hydropower is a big contributor to Brazil’s energy mix, but Belo Monte raises environmental hackles in the same way as China’s Three Gorges Dam and the various Upper Mekong dam projects. 20.


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The Truth Machine: The Blockchain and the Future of Everything by Paul Vigna, Michael J. Casey

3D printing, additive manufacturing, Airbnb, altcoin, Amazon Web Services, barriers to entry, basic income, Berlin Wall, Bernie Madoff, bitcoin, blockchain, blood diamonds, Blythe Masters, business process, buy and hold, carbon footprint, cashless society, cloud computing, computer age, computerized trading, conceptual framework, Credit Default Swap, crowdsourcing, cryptocurrency, cyber-physical system, dematerialisation, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Ethereum, ethereum blockchain, failed state, fault tolerance, fiat currency, financial innovation, financial intermediation, global supply chain, Hernando de Soto, hive mind, informal economy, intangible asset, Internet of things, Joi Ito, Kickstarter, linked data, litecoin, longitudinal study, Lyft, M-Pesa, Marc Andreessen, market clearing, mobile money, money: store of value / unit of account / medium of exchange, Network effects, off grid, pets.com, prediction markets, pre–internet, price mechanism, profit maximization, profit motive, ransomware, rent-seeking, RFID, ride hailing / ride sharing, Ross Ulbricht, Satoshi Nakamoto, self-driving car, sharing economy, Silicon Valley, smart contracts, smart meter, Snapchat, social web, software is eating the world, supply-chain management, Ted Nelson, the market place, too big to fail, trade route, transaction costs, Travis Kalanick, Turing complete, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, universal basic income, web of trust, zero-sum game

the company said that the prototype’s use had generated $6.5 million: Andrew Sawers, “Foxconn Uses Blockchain for New SCF Platform after $6.5m Pilot,” SCF Briefing, March 17, 2017, http://www.scfbriefing.com/foxconn-launches-scf-blockchain-platform/. Blockchain-proven digital tokens point to what blockchain: Michael J. Casey and Pindar Wong, “Global Supply Chains Are About to Get Better, Thanks to Blockchain,” Harvard Business Review, March 13, 2017, https://hbr.org/2017/03/global-supply-chains-are-about-to-get-better-thanks-to-blockchain. Belt and Road Blockchain Consortium: https://www.beltandroadblockchain.org/. Some have described it as a Beijing-led Marshall Plan: “China’s One Belt, One Road: Will It Reshape Global Trade?” Podcast Transcript, July 2016, McKinsey.com, https://www.mckinsey.com/global-themes/china/chinas-one-belt-one-road-will-it-reshape-global-trade.

But, as painful as that would be for the company’s reputation, the reality was actually worse: Chipotle had no way to pinpoint where the dangerous virus got into its food offerings; it only knew that it came from one of its many third-party beef suppliers. Five months later, the best management could come up with was that it “most likely” came from contaminated Australian beef. At the heart of the problem was the lack of visibility that Chipotle—like any food provider—has over the global supply chain of ingredients that flow into its operations. That lack of knowledge meant that Chipotle could neither prevent the contamination before it happened, nor contain it in a targeted way after it was discovered. Supply chains are composed of distinct, inherently independent businesses. Their interests align around the goal of maximizing the sale of an end product—the makers of transistors, chips, capacitors, screens, and other components of a Samsung smartphone will, for example, gain if Samsung experiences rising demand.

To tackle this problem, Regenor’s team at Moog has launched a service it calls Veripart, which uses blockchain technology to, among other things, verify the software design and upgrading work performed by different providers of 3D-printed products along a supply chain. It plans to incorporate a host of features that, among other things, will protect intellectual property and make it more flexible and dynamic as an asset. The team at Moog plans to invite all members of its far-flung global supply chain to participate. Meanwhile, defense contractor Lockheed Martin, one of Moog’s biggest customers, has also seen the light with regard to blockchain’s value in secure work processes within this highly sensitive industry. The company announced that it has entered into a joint venture with Virginia-based GuardTime Federal to integrate blockchain technology into its supply-chain risk management.


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Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

"Robert Solow", 3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, disruptive innovation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, Ethereum, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kickstarter, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

I then hopped to the very different island of Manhattan, spending four years at the United Nations on the team writing the annual flagship Human Development Report, while witnessing barefaced power games block progress in international negotiations. I left to fulfil a long-held ambition and worked with Oxfam for over a decade. There I witnessed the precarious existences of women – from Bangladesh to Birmingham – employed at the sharp end of global supply chains. We lobbied to change the rigged rules and double standards governing international trade rules. And I explored the human-rights implications of climate change, meeting farmers from India to Zambia whose fields had been turned to bare earth because the rains had never come. Then I became a mother – of twins, to boot – and spent a year on maternity leave, immersed in the bare-bum economy of raising infants.

Thanks to the scale of global income inequality, responsibility for global greenhouse gas emissions is highly skewed: the top 10% of emitters – think of them as the global carbonistas living on every continent – generate around 45% of global emissions, while the bottom 50% of people contribute only 13%.43 Food consumption is deeply skewed too. Around 13% of people worldwide are malnourished. How much food would it take to meet their caloric needs? Just 3% of the global food supply. To put that in context, 30%–50% of the world’s food gets lost post-harvest, wasted in global supply chains, or scraped off dinner plates and into kitchen bins.44 Hunger could, in effect, be ended with just 10% of the food that never gets eaten. From these examples it is clear that getting into the Doughnut calls for a far more equitable distribution of humanity’s use of resources. A third factor is aspiration: whatever people consider necessary for a good life. And one of the biggest influences on our aspirations is how and where we live.

London: Allen Lane, p. 136. 44. Acemoglu, D. and Robinson, J. (2013) Why Nations Fail: The Origins of Power, Prosperity and Poverty. London: Profile Books. 45. Goodman, P. (2008) ‘Taking a hard new look at Greenspan legacy’, New York Times, 8 October 2008. http://www.nytimes.com/2008/10/09/business/economy/09greenspan.html?pagewanted=all 46. Raworth, K. (2002) Trading Away Our Rights: women workers in global supply chains. Oxford: Oxfam International. 47. Chang, H-J. (2010) 23 Things They Don’t Tell You About Capitalism, London: Allen Lane. 48. Ferguson, T. (1995) Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems. London: University of Chicago Press, p. 8. 49. BBC News 2 April 2014. ‘US Supreme Court strikes down overall donor limits’. http://www.bbc.co.uk/news/world-us-canada-26855657 50.


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The Great Surge: The Ascent of the Developing World by Steven Radelet

"Robert Solow", Admiral Zheng, agricultural Revolution, Asian financial crisis, bank run, Berlin Wall, Branko Milanovic, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, clean water, colonial rule, creative destruction, demographic dividend, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, Erik Brynjolfsson, European colonialism, F. W. de Klerk, failed state, Francis Fukuyama: the end of history, Gini coefficient, global pandemic, global supply chain, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), invention of the steam engine, James Watt: steam engine, John Snow's cholera map, Joseph Schumpeter, Kenneth Arrow, land reform, low skilled workers, M-Pesa, megacity, Mikhail Gorbachev, Nelson Mandela, off grid, oil shock, out of africa, purchasing power parity, race to the bottom, randomized controlled trial, Robert Gordon, Second Machine Age, secular stagnation, Simon Kuznets, South China Sea, special economic zone, standardized shipping container, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, women in the workforce, working poor

• The fastest-growing region for mobile broadband penetration is Africa, which leapt from 2 percent penetration in 2010 to 20 percent in 2014.5 THE GLOBALIZATION OF TRADE AND FINANCE—AND VACCINES When working well, global integration provides families and businesses in developing countries with more choices, options, and opportunities for progress. For poor people living on subsistence incomes, the availability of cheaper goods boosts their effective income. Whatever income they have goes further. At the same time, integration creates new markets for exports that can accelerate growth and raise incomes. Global supply chains allow firms to specialize more narrowly, build expertise in specific areas, and sell goods and services into larger global markets, all of which helps create jobs. Telecommunications technologies allow developing countries to provide services—such as backroom accounting or call centers—that didn’t exist a few decades ago. Integration of capital markets allows firms to attract financing from abroad that they might not find at home.

Similarly, horticulture producers in Uganda and Kenya rely on air transportation to fly fresh-cut flowers grown in greenhouses located near their airports to markets in Europe, where the flowers can be sold on the streets the next morning. FIGURE 7.3: AIR TRAVEL IS MUCH CHEAPER Real Cost per Mile in the United Sates Source: “Annual Round-Trip Fares and Fees: Domestic,” Airlines for America. More important, cheaper airfares mean that people can move much more easily, and with them ideas and knowledge. Global supply chains benefit from managers and engineers connecting on the internet and by cell phones, but also from the ease with which people can move from one city to the next for planning and problem solving. Businesses are much more connected and integrated because people can move so easily. Inexpensive airfares also have been crucial to the growth of tourism. It took Theodore Roosevelt four weeks to get to Kenya to begin his famous safari for the Smithsonian Institution in 1909.

These investments will become even more important in the face of climate change and other environmental stresses that threaten to reduce agricultural productivity in the future. More extensive trade, and the skills and technologies that come with it, will continue to be a major driver of growth in the decades to come. In a more globalized world, businesses in developing countries will look for opportunities to specialize, find niche markets, and integrate themselves into global supply chains. Financial and insurance markets need further development, since access to finance remains a major constraint for many businesses, especially small ones. In many countries, considerable scope remains for reducing tariff and other trade restrictions. In others, limited amounts of protection may be helpful in some circumstances, especially if tariffs are time limited and applied in sectors where firms can become competitive quickly.


pages: 159 words: 45,073

GDP: A Brief but Affectionate History by Diane Coyle

"Robert Solow", Asian financial crisis, Berlin Wall, big-box store, Bretton Woods, BRICs, business cycle, clean water, computer age, conceptual framework, crowdsourcing, Diane Coyle, double entry bookkeeping, en.wikipedia.org, endogenous growth, Erik Brynjolfsson, Fall of the Berlin Wall, falling living standards, financial intermediation, global supply chain, happiness index / gross national happiness, hedonic treadmill, income inequality, income per capita, informal economy, Johannes Kepler, John von Neumann, Kevin Kelly, Long Term Capital Management, mutually assured destruction, Nathan Meyer Rothschild: antibiotics, new economy, Occupy movement, purchasing power parity, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, Silicon Valley, Simon Kuznets, The Wealth of Nations by Adam Smith, Thorstein Veblen, University of East Anglia, working-age population

Achieving a higher standard of living with fewer demands on natural and labor resources will help ease price pressures and continue this decade’s good news on inflation,” wrote the Dallas Fed’s economists in 1998.4 The promises of “mass customization” they dangled before their readers’ eyes in 1998 are coming to pass, including TV shows on demand so viewers, not schedulers, determine the evening’s viewing; or clothing made-to-measure for the midmarket many, not just the wealthy few. Separate statistical headaches arise from the increasing complexity of the economy, due to the fact that most goods are now “made” in global supply chains. The components will be manufactured in a number of countries, shipped around the world to be assembled in one place, and shipped back out to their destination markets. This is true of goods as apparently simple as a shirt or as sophisticated as an iPhone.5 China, of course, has been the main country of assembly in these global chains, but other Asian countries and their Latin American competitors Brazil and Mexico have been gaining ground.

See financial intermediation services indirectly measured Fitoussi, Jean-Paul, 118, 139 Fleming, Alexander, 63 Ford, Henry, 45 France, 8–9, 103 Frank, Robert, 112 free market ideology, 93 Friedman, Thomas, 95–96 Gagarin, Yuri, 47 Geary-Khamis dollars, 52 Genuine Progress Indicator (GPI), 116, 137 Georgiou, Andreas, 1–2, 4 Germany, 17, 41–42, 71 Ghana, 32, 53, 94, 107 Gilbert, Milton, 15, 50 globalization, 93–94 global supply chains, 125 Golden Age, 43, 56 Gosplan, 29 government expenditures (G), 27–29 government role in economy, 14–17, 19–21, 23, 63–66, 77–78. See also fiscal policy; monetary policy; policy and politics government services, 38–39 Great Depression, 12–13, 119, 121 Greece, 1–5, 72, 73, 138 Greenspan, Alan, 83, 88, 94, 102 Gross Domestic Product (GDP): adjustments and reforms of, 92, 117, 136–38; availability of country data on, 78; calculation issues in, 2, 32–34, 52–54; circular flow model of, 26–27, 27f, 57, 63; complexity of, 24–25, 28–31; concept of, 4–5, 24–31 (see also purpose and meanings of); country comparisons of, 42; criticisms of, 5, 14, 104, 110–11; future of, 121–40; GNP vs., 25; “gross” component of, 25, 30; HDI correlated with, 73–74; importance of, 1–6, 42, 135–36; information gathering for, 33, 37, 51–53, 137–38; international comparisons of, 48–57; issues facing, 121–35; loans influenced by, 3; origins of, 7, 16–18, 119–20; postwar, 43–45, 43t, 62–63; purpose and meanings of, 5–6, 92, 121, 136, 138–40 (see also concept of); recommendations concerning, 136–40; revisions of, 36; spending-income relationship in, 30, 33–34; statistical patterns in, 3; well-being and welfare correlated with, 111, 117, 136; well-being and welfare not measured by, 5, 14, 40, 91–92, 111–14, 124–25, 136, 140 Gross National Product (GNP), 15–16, 25, 115–16 Guevara, Che, 68 Haldane, Andrew, 99, 101 happiness, 5, 6, 110–13, 136, 137.


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The Story of Stuff: The Impact of Overconsumption on the Planet, Our Communities, and Our Health-And How We Can Make It Better by Annie Leonard

air freight, banking crisis, big-box store, blood diamonds, Bretton Woods, California gold rush, carbon footprint, clean water, Community Supported Agriculture, dematerialisation, employer provided health coverage, energy security, European colonialism, Firefox, Food sovereignty, Ford paid five dollars a day, full employment, global supply chain, income inequality, Indoor air pollution, intermodal, Jeff Bezos, job satisfaction, Kickstarter, liberation theology, McMansion, Nelson Mandela, new economy, oil shale / tar sands, peak oil, Ralph Nader, renewable energy credits, Silicon Valley, special economic zone, supply-chain management, the built environment, trade liberalization, trickle-down economics, union organizing, Wall-E, Whole Earth Review, Zipcar

They haven’t yet completed their analyses on the health and environmental impacts of electronics from several years ago, and a new crop of products has already been introduced.55 On top of that, what makes telling the full story truly impossible is the secrecy the industry mandates, claiming their processes and materials are proprietary. That mentality is reflected in the title of a book by former Intel CEO Andy Grove: Only the Paranoid Survive.56 It is impossible to know the exact locations where all the components of a laptop were drilled for, mined, or made, because of the increasingly complex supply chain of the electronics industry, which the UN reports has the most globalized supply chain of all industries.57 But we do know that all the problematic mining practices described in the chapter on extraction—for gold and tantalum, as well as copper, aluminum, lead, zinc, nickel, tin, silver, iron, mercury, cobalt, arsenic, cadmium, and chromium—are involved. The brand name company—Dell, HP, IBM, Apple, etc.—may have little immediate knowledge of, or even control over, how materials are derived or components are made, because these companies outsource to hundreds of other companies all over the world that provide and assemble the pieces.

But ultimately, we must remember—as Allegheny College political science professor Michael Maniates says—the choices available to us as consumers are limited and predetermined by forces outside the shopping market. Those forces can best be changed through social and political activism.20 Trucks and Container Ships and Planes, Oh My! Ships, trucks, roads, planes, and trains are needed to move Stuff along this globalized supply chain. The transportation infrastructure consumes enormous quantities of fossil fuels and spews out waste, but these are some of the most hidden of externalized costs in consumer goods, and most people are completely unaware of them. Even those shoppers who are aware of the source of the materials in products, the ones who know to ask whether diamonds fueled violence in Africa or whether the cotton fields in Turkey used pesticides, rarely know what to ask about how goods are transported.

United Parcel Service, or UPS, has launched trucks with hydraulic hybrid technology that are supposed to “increase fuel efficiency by 60–70% in urban use and lowers greenhouse gas emissions by 40%, compared to UPS’s conventional diesel delivery trucks.”41 Not to be outdone, FedEx has peppered its fleet with hybrid electric vehicles that decrease particulate emissions by 96 percent and go 57 percent farther on a gallon of fuel than a conventional FedEx truck, reducing fuel costs by more than one-third.42 DHL has launched its own version of carbon offsets, offering customers the ability to tack on a 3 percent extra fee that DHL promises to invest in “green projects like vehicle technology, solar panels and reforestation.”43 Nice as those efforts sound, they don’t get to the crux of the problem, which is this set of massive global supply chains (as long as ten thousand miles, according to some experts44), the consumer demand for more cheap Stuff delivered faster and faster, and the economic rules governing the whole show, which make it more profitable to make Stuff on the other side of the planet than close to home. With all of the above in mind, let’s look at the retail distribution of the same three items we zeroed in on last chapter.


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No Ordinary Disruption: The Four Global Forces Breaking All the Trends by Richard Dobbs, James Manyika

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, access to a mobile phone, additive manufacturing, Airbnb, Amazon Mechanical Turk, American Society of Civil Engineers: Report Card, autonomous vehicles, Bakken shale, barriers to entry, business cycle, business intelligence, Carmen Reinhart, central bank independence, cloud computing, corporate governance, creative destruction, crowdsourcing, demographic dividend, deskilling, disintermediation, disruptive innovation, distributed generation, Erik Brynjolfsson, financial innovation, first square of the chessboard, first square of the chessboard / second half of the chessboard, Gini coefficient, global supply chain, global village, hydraulic fracturing, illegal immigration, income inequality, index fund, industrial robot, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, inventory management, job automation, Just-in-time delivery, Kenneth Rogoff, Kickstarter, knowledge worker, labor-force participation, low skilled workers, Lyft, M-Pesa, mass immigration, megacity, mobile money, Mohammed Bouazizi, Network effects, new economy, New Urbanism, oil shale / tar sands, oil shock, old age dependency ratio, openstreetmap, peer-to-peer lending, pension reform, private sector deleveraging, purchasing power parity, quantitative easing, recommendation engine, Report Card for America’s Infrastructure, RFID, ride hailing / ride sharing, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, Snapchat, sovereign wealth fund, spinning jenny, stem cell, Steve Jobs, supply-chain management, TaskRabbit, The Great Moderation, trade route, transaction costs, Travis Kalanick, uber lyft, urban sprawl, Watson beat the top human players on Jeopardy!, working-age population, Zipcar

Yet established multinationals, mostly from advanced economies, remain significantly underweight in emerging markets, even as newcomers from these countries are expanding aggressively. The accelerations in global interconnectivity require an intuition reset on the part of companies. They must plan early to scale up globally, tailor business models to new markets, get to know new competitors, develop global talent, and prepare for shocks and volatility in an increasingly interconnected world economy. Businesses that focused mainly on cost effectiveness in global supply chains now need to consider how “value” chains may evolve—who the participants may be, which regions could play a role, and how value could shift along the value chain. Just as the introduction of electricity was an important factor in pushing the world’s industrialized economies into higher gear a century ago, the current of economic energy from global economic flows coursing through the system offers similar potential today.

In fast-growing developing economies, more than 143,000 Internet-related businesses launch every year.57 Jumia, a Nigerian e-commerce company that now operates in Ivory Coast, Kenya, Egypt, and Morocco, in 2013 became the first African winner of the World Retail Award for “Best Retail Launch of the Year.”58 M-pesa, a mobile-money service started in Kenya, is now disrupting traditional banking, payments, and money-transfer service providers across Africa. Build New Global—and Digital—Ecosystems Digital platforms enable companies to expand rapidly and profitably to customers further away from their home markets than was possible in the past. Building cross-border ecosystems ranging from global supply chains to innovation networks could help companies take advantage of this opportunity. Many companies are exploiting global interconnections and digital platforms to weave together networks of suppliers, distributors, and after-sales service providers—not just for procurement but also for preemptive maintenance that reduces production downtime, and for more efficient parts supply. The Boeing Edge, a new service division of Boeing, is seeking to transform the company from a traditional supplier of aviation equipment into something that more closely resembles a “digital airline.”

Ishan Chatterjee, Jöm Küpper, Christian Mariager, Patrick Moore, and Steve Reis, “The decade ahead: Trends that will shape the consumer goods industry,” McKinsey & Company, December 2010. 42. Bisson et al., “The great rebalancing.” 43. Atsmon et al., “Winning the $30 trillion decathlon.” 44. Chatterjee et al., “The decade ahead.” 45. Tom Glaser, “2013 investor day,” VF Corporation, June 11, 2013, www.vf17×17.com/pdf/2013%20VFC%20Investor%20Day-Glaser%20Transcript.pdf; Gary P. Pisano and Pamela Adams, VF Brands: Global Supply Chain Strategy, Harvard Business School case number 610–022, November 2009, www.hbs.edu/faculty/Pages/item.aspx?num=38127. 46. Atsmon et al., “Winning the $30 trillion decathlon.” 47. Alejandro Diaz, Max Magni, and Felix Poh, “From oxcart to Wal-Mart: Four keys to reaching emerging-market consumers,” McKinsey Quarterly, October 2012. 48. Atsmon et al., “Winning the $30 trillion decathlon.” 49.


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The Great Convergence: Information Technology and the New Globalization by Richard Baldwin

"Robert Solow", 3D printing, additive manufacturing, Admiral Zheng, agricultural Revolution, air freight, Amazon Mechanical Turk, Berlin Wall, bilateral investment treaty, Branko Milanovic, buy low sell high, call centre, Columbian Exchange, commoditize, Commodity Super-Cycle, David Ricardo: comparative advantage, deindustrialization, domestication of the camel, Edward Glaeser, endogenous growth, Erik Brynjolfsson, financial intermediation, George Gilder, global supply chain, global value chain, Henri Poincaré, imperial preference, industrial cluster, industrial robot, intangible asset, invention of agriculture, invention of the telegraph, investor state dispute settlement, Isaac Newton, Islamic Golden Age, James Dyson, Kickstarter, knowledge economy, knowledge worker, Lao Tzu, low skilled workers, market fragmentation, mass immigration, Metcalfe’s law, New Economic Geography, out of africa, paper trading, Paul Samuelson, Pax Mongolica, profit motive, rent-seeking, reshoring, Richard Florida, rising living standards, Robert Metcalfe, Second Machine Age, Simon Kuznets, Skype, Snapchat, Stephen Hawking, telepresence, telerobotics, The Wealth of Nations by Adam Smith, trade liberalization, trade route, Washington Consensus

In particular, the pre-and post-service jobs tend to go to (or stay in) cities in G7 nations. This smile curve is also consistent with the trend called “servicification” of manufacturing since the total value being added in what looks like the manufacturing sector (the fabrication stages) is falling while the value being added in what look like service sectors is rising. SOURCE: Baldwin, “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going,” Centre for Economic Policy Research, Discussion Paper No. 9103, August 2012. Figure 18. Today, most Apple products are designed in California and Apple handles the marketing, distribution, after-sales service, and many add-on services via its App Store, iTunes, etc. The fabrication stages, by contrast, are mostly done in China and organized by unrelated companies like Foxconn.

Someone has to be in charge of getting each task done, so the next level is “occupations,” defined as the individual workers performing the task (often with the help of machinery). In most production processes, workers are placed close to other workers, which defines the third natural grouping: stages. In most cases, the second unbundling (which is to say offshoring) concerns stages of production, not occupations or tasks. SOURCE: Richard Baldwin, “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going,” in Global Value Chains in a Changing World, ed. Deborah K. Elms and Patrick Low (Geneva: World Trade Organization, 2013). Figure 11. The Specialization versus Coordination Tradeoff Deciding how to organize production is impossibly complex in the real world—that is, in the world of Mein Herr’s one-mile-to-the-mile-map world.

It seems likely, therefore, that the cost of moving ideas internationally will continue to fall. Communication Technology (CT), however, is only one half of the ICT revolution. The other half concerns Information Technology (IT). As the discussion about production unbundling in Chapter 6 makes clear, both IT and CT affect the course of offshoring, but they work in opposite directions. When thinking about the future of global supply chains, we must speculate about the possibility of truly revolutionary IT developments. One such possible development relates to computer-integrated manufacturing (CIM). This is not futurology. It has already had a big impact. It has already produced a tectonic shift in manufacturing in high-wage nations—moving manufacturing from a situation where machines helped workers make things to a situation where workers help machines make things.


The New Class War: Saving Democracy From the Metropolitan Elite by Michael Lind

affirmative action, anti-communist, basic income, Bernie Sanders, Boris Johnson, Bretton Woods, business cycle, capital controls, Cass Sunstein, central bank independence, centre right, collective bargaining, commoditize, corporate governance, crony capitalism, deindustrialization, Doha Development Round, Donald Trump, Edward Snowden, future of work, global supply chain, guest worker program, Haight Ashbury, illegal immigration, immigration reform, invisible hand, knowledge economy, liberal world order, low skilled workers, low-wage service sector, manufacturing employment, Mark Zuckerberg, mass immigration, means of production, moral panic, Nate Silver, new economy, offshore financial centre, oil shock, open borders, plutocrats, Plutocrats, Ponzi scheme, purchasing power parity, Ralph Nader, regulatory arbitrage, rent-seeking, Richard Florida, Ronald Reagan, Silicon Valley, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade liberalization, union organizing, universal basic income, upwardly mobile, WikiLeaks, Wolfgang Streeck, working poor

By this offshoring-friendly definition, if a firm shuts down a factory in the US (GDP per capita in 2017: $59,500 in purchasing power parity) and opens a factory with much cheaper workers in China ($16,700) or Indonesia ($12,400) or Venezuela ($12,100), the resulting exports to the US market are “not from a low-wage country to a high-wage country.”12 In contrast with MGI, the Nobel laureate economist Michael Spence claims that “labor arbitrage has been the core driver of global supply chains for at least three decades—with significant distributional and employment effects.”13 According to the Commerce Department, between 1999 and 2009 US multinational corporations cut 864,600 workers in the US while adding 2.9 million workers abroad. Fifty-seven percent of the foreign hiring by nonfinancial companies was in Asia, with multinationals adding 683,000 workers in China and 392,000 workers in India.

Compared to more direct prolabor measures like minimum wages, collective bargaining and limits on global labor arbitrage, pulverizing the most productive firms in the economy is a very roundabout and inefficient way to try to raise wages, like burning down a barn to roast a pig in the famous fable by Charles Lamb.12 Like redistributionism, antimonopolism cannot work at the national level in today’s system of liberalized trade and globalized production. If the Justice Department used antitrust to break up large suppliers in the US, firms that coordinate global supply chains could simply shift those links in production to foreign countries with more lenient competition policies. The result could be accelerated by American deindustrialization, with further massive shifts in employment from the traded sector to the low-wage, low-productivity domestic service sector. In some cases, foreign state-backed national champions might win US domestic market share from American firms that had been broken up by the federal government.


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The Startup Way: Making Entrepreneurship a Fundamental Discipline of Every Enterprise by Eric Ries

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Airbnb, autonomous vehicles, barriers to entry, basic income, Ben Horowitz, Black-Scholes formula, call centre, centralized clearinghouse, Clayton Christensen, cognitive dissonance, connected car, corporate governance, DevOps, Elon Musk, en.wikipedia.org, fault tolerance, Frederick Winslow Taylor, global supply chain, index card, Jeff Bezos, Kickstarter, Lean Startup, loss aversion, Marc Andreessen, Mark Zuckerberg, means of production, minimum viable product, moral hazard, move fast and break things, move fast and break things, obamacare, peer-to-peer, place-making, rent-seeking, Richard Florida, Sam Altman, Sand Hill Road, secular stagnation, shareholder value, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, Steve Jobs, the scientific method, time value of money, Toyota Production System, Uber for X, universal basic income, web of trust, Y Combinator

Today, global communications means that new products can be conceived and built anywhere, and customers can discover them at an unprecedented pace. What’s more, individuals and small companies have unprecedented access to these new global systems, compared to a small number of owners of capital in the past. This setup flips Karl Marx’s old dictum on its head. What he called the means of production can now be rented. Entire global supply chains can be borrowed at little more than the marginal cost of the underlying products they produce. This dramatically lowers the initial capital costs required to try something new. In addition, the basis of competition is shifting. Today’s consumers have more choices and are more demanding. Technology trends reward businesses that have the broadest reach with near-monopoly-type power. The basis of competition is often design, brand, business model, or technology platform.

Managers who exceeded this total were promoted, those who fell short were not. Once put into place, the system worked to prevent the kind of miscalculation and waste of resources that had previously occurred in the company. The structure that Alfred Sloan pioneered became the basis for all of twentieth-century general management. You can’t run a multiproduct, multidivision, multinational company and its attendant global supply chains without it. It is one of the true revolutionary ideas of the past one hundred years and is still widely in use today. Everyone knows the drill: beat your forecast, your stock goes up, you get promoted. Miss it and watch out. But when I first read this story, what went through my head was: You’re telling me that… once upon a time… people made forecasts… and they came true? And, not only that, the forecasts were so accurate that they could be used as a fair system for deciding who gets promoted and who doesn’t?

What that meant was that the team would spend five years building a product and then another chunk of time setting up a distribution network, all for a product that by then might have been designed nearly a decade earlier. Still, the question loomed over the room. Why does it take so long to build this engine? I don’t want to undersell the technical challenges that led to the original five-year plan. The specifications required an audacious engineering effort that combined a difficult set of design parameters with the need for a new mass-production facility and global supply chain. A lot of brilliant people had done real, hard work to ensure that the plan was feasible and technically viable. But a large part of the technical difficulty of this project was driven by the specifications themselves. Remember that this product had to support five distinct uses in very different physical terrains (visualize how different the circumstances are at sea, in stationary drilling, on a train, for power generation, and in mobile fracking).


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We Are All Fast-Food Workers Now: The Global Uprising Against Poverty Wages by Annelise Orleck

airport security, American Legislative Exchange Council, anti-communist, Bernie Sanders, big-box store, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, card file, clean water, collective bargaining, corporate social responsibility, deindustrialization, Deng Xiaoping, Donald Trump, Ferguson, Missouri, financial deregulation, Food sovereignty, gig economy, global supply chain, global value chain, immigration reform, indoor plumbing, Kickstarter, land reform, land tenure, Mahatma Gandhi, mass immigration, McJob, means of production, new economy, payday loans, precariat, race to the bottom, Rana Plaza, rent-seeking, ride hailing / ride sharing, road to serfdom, Ronald Reagan, Rosa Parks, shareholder value, Skype, special economic zone, Triangle Shirtwaist Factory, union organizing, War on Poverty, women in the workforce, working poor

Around the world, uprisings for workers’ and women’s rights and against dams and mines have touched a nerve. “The answer is to keep on fighting,” Kalpona Akter insists. “If you are always worrying about dying, you can’t live.” Activists know that their struggles have also brought change: wage increases, hours reductions, enhanced maternity leave, and investigations of labor conditions in complicated global supply chains. The geographic scope and scale of the protests, the vast numbers of people involved, the militancy and the courage of the protesters have been stunning. Many of those rising are the poorest of the poor, willing to risk what little they have for the next generation. We are witnessing the first truly global uprisings since the 1980s “People Power” movements that toppled Duvalier in Haiti, Marcos in the Philippines, Ershad in Bangladesh, and Communist dictatorships across Central and Eastern Europe.

For mental health, United Sisterhood developed “what we call the Happy Happy program.” They throw parties. The women “cook and eat together; they drink and have music—mini concerts or dances.” They are lonely and isolated, far from family and friends in their villages, Sok says. Workers need community before they can stand up for themselves. Finally, drop-in centers teach workers to understand global supply chains, says Sok. “We show them, this is the profit of Puma, Adidas, Walmart. This is what CEOs earn in a year. We take workers to other countries when we can, to meet people who make clothes there for the same companies. We take them window shopping to see the clothes and shoes they make. They learn what those cost in stores overseas compared to how much they make for sewing each item. They feel so hurt.”

See also living wage movement Food Justice certification, 246 Food Policy Councils, 248 food-service workers, 79 Foxx, Anthony, 243 Frattini, Massimo, 21, 24, 27–28, 35, 56 freedom fighters, 75 freedom schools, 59 Free Trade Union of Workers of the Kingdom of Cambodia (FTU), 149, 153–54 Friedman, Thomas, 71 Gallin, Dan, 97 Gandhi, Mahatma, 89–91 Gap (clothing manufacturer), 152, 253 Garcia, Vicky Carlos, 13, 227–28, 230, 232–35, 237 garment industry: environmental costs, 127; ethical apparel manufacturing, 249–50; globalization of, 123–27, 139; profits and earnings, 164–65; “run-away shops,” 129; response to worker demands, 37, 145, 153–56, 171–73, 175; use of migrant workers, 161. See also export-processing zones (EPZs); specific garment factories garment workers: achievements, 172–73, 251–52; bravery in face of state violence, 154–56, 171–73; as contract workers, 177; costs of living, 132–33, 150; educating about global supply chains, 164; exposure to toxic chemicals, 2, 146, 160, 165, 251 factory fires, 136–39; and fast-fashion production techniques, 128; forced labor, 128; Girl Effect campaign/foundation, 130–31; global vision, 174; hunger and mental illness among, 146; identifying manufacturers, challenges of, 149–50; labor laws and protections, 169–70; living wage rallies, 173; minimum wage increases, 172; New York strike, 1909, 38; organizing strategies and actions, 39–41, 53–54, 121–22, 139–40, 148, 154; production quotas, 131; protests organized against the Tuba Group, 142–45; risks faced by, 37; and union tradition, 169; working conditions, 39–40, 119, 126–28, 132, 134, 149, 166–68, 170.


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Marx at the Arcade: Consoles, Controllers, and Class Struggle by Jamie Woodcock

4chan, Alexey Pajitnov wrote Tetris, anti-work, augmented reality, barriers to entry, battle of ideas, Boris Johnson, Build a better mousetrap, butterfly effect, call centre, collective bargaining, Columbine, conceptual framework, cuban missile crisis, David Graeber, deindustrialization, deskilling, Donald Trump, game design, gig economy, glass ceiling, global supply chain, global value chain, Hacker Ethic, Howard Zinn, John Conway, Kickstarter, Landlord’s Game, late capitalism, Marshall McLuhan, means of production, Minecraft, mutually assured destruction, Naomi Klein, Oculus Rift, pink-collar, sexual politics, Silicon Valley, union organizing, unpaid internship, V2 rocket

This insignificant blemish who calls himself Assassin? You disrespect the very city that works day and night so that we may drink this. This miracle. This tea. As I played through this stage of the game, it brought to mind all the different workers and processes that must have come together across the world to allow the player to enjoy “this miracle.” The videogame, like the cup of tea, requires complex global supply chains and different kinds of labor to ensure the final object can be consumed by the player. Uncovering these supply chains today will take more than just studying the lines of an evil monologue. The first encounter with Karl Marx in Assassin’s Creed Syndicate takes place in the packed Whitechapel train station, somewhere I used to pass through daily in modern, real-life London. Moving through the crowds, Marx can be spotted arguing with a policeman.

From the early games to the mods of Half-Life and Warcraft, there has always been a hard-to-control element that escapes and that capital attempts to capture. The production of videogames today involves “the highly disciplined and exploitative control of its cognitariat workforce—increasingly prominent in cognitive capitalism generally.”1 In these pages, we identified new ways companies manage and exploit workers in the games studio, but we also explored the essential global supply chains that mix both material and immaterial production. As Ian Williams has argued, the “exploitation in the video game industry provides a glimpse at how the rest of us may be working in years to come.”2 We discussed this kind of work through Notes from Below’s class composition framework, understood as “a material relation with three parts: the first is the organisation of labour power into a working class (technical composition); the second is the organisation of the working class into a class society (social composition); the third is the self-organisation of the working class into a force for class struggle (political composition).”3 This allowed us to unpack the organization of videogame work.


pages: 247 words: 68,918

The End of the Free Market: Who Wins the War Between States and Corporations? by Ian Bremmer

affirmative action, Asian financial crisis, banking crisis, Berlin Wall, BRICs, British Empire, centre right, collective bargaining, corporate governance, creative destruction, credit crunch, Credit Default Swap, cuban missile crisis, Deng Xiaoping, diversified portfolio, Doha Development Round, Exxon Valdez, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global reserve currency, global supply chain, invisible hand, joint-stock company, Joseph Schumpeter, Kickstarter, laissez-faire capitalism, low skilled workers, mass immigration, means of production, megacity, Mikhail Gorbachev, mutually assured destruction, Naomi Klein, Nelson Mandela, new economy, offshore financial centre, open economy, race to the bottom, reserve currency, risk tolerance, shareholder value, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, trade route, tulip mania, uranium enrichment, Washington Consensus, Yom Kippur War, zero-sum game

The third obituary was for the nation-state, which a 1993 United Nations Human Development Report described as “too small for the big things and too big for the small things”3 and author Kenichi Ohmae dismissed in 1995 as a “nostalgic fiction.”4 To understand why some believed that nation-states were headed for history’s junkyard, it helps to define the word globalization. It’s essentially a catchall term for all the various processes by which ideas, information, people, money, goods, and services cross international borders at unprecedented speed. Together, these processes have created a much more integrated global economy through trade, foreign direct investment, large-scale capital flows, the construction of global supply chains, innovation in communications technologies, and mass migration. None of these individual elements is entirely new. Global trade has existed for centuries. But the multiplier effect these forces create and the velocity with which they move make this phenomenon qualitatively different from anything that has come before. Globalization, like capitalism, is powered by the individual impulses of billions of people.

After September 11, 2001, it appeared that militant groups and individuals empowered by globalization-assisted technological development could undermine a country’s sovereignty and inflict enormous political and economic damage with relatively low-cost terrorist attacks. Some have predicted the rise of the “global citizen” as a challenge to the nation-state. The logic is simple: If you no longer depend for information on news sources broadcasting or publishing within one country, if you can quickly and easily form electronic social networks with people all over the world, if outsourcing and the advent of the global supply chain allow you to work for a company that is headquartered ten thousand miles from your home, if travel to foreign countries becomes ever easier and more affordable, and if more members of your family live and work elsewhere, won’t these globalization-generated changes weaken the ties that bind you to any one country? Maybe one day. But there is no evidence that those 300 million Chinese netizens have become any less Chinese since they first logged on.


Work in the Future The Automation Revolution-Palgrave MacMillan (2019) by Robert Skidelsky Nan Craig

3D printing, Airbnb, algorithmic trading, Amazon Web Services, anti-work, artificial general intelligence, autonomous vehicles, basic income, business cycle, cloud computing, collective bargaining, correlation does not imply causation, creative destruction, data is the new oil, David Graeber, David Ricardo: comparative advantage, deindustrialization, deskilling, disintermediation, Donald Trump, Erik Brynjolfsson, feminist movement, Frederick Winslow Taylor, future of work, gig economy, global supply chain, income inequality, informal economy, Internet of things, Jarndyce and Jarndyce, Jarndyce and Jarndyce, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Joseph Schumpeter, knowledge economy, Loebner Prize, low skilled workers, Lyft, Mark Zuckerberg, means of production, moral panic, Network effects, new economy, off grid, pattern recognition, post-work, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Steve Jobs, strong AI, technoutopianism, The Chicago School, The Future of Employment, the market place, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thorstein Veblen, Turing test, Uber for X, uber lyft, universal basic income, wealth creators, working poor

This is my riposte, incidentally, to The Economist who wrote a reply to the original Bullshit Jobs article almost instantly after I wrote it. They tried to make the argument that this endless creation of new office jobs is actually necessary—it’s all because with complex global supply chains, production has become so digitized and efficient that we need many times more people to manage it. So bullshit jobs they claimed were the equivalent of the boring alienating factory job of the 1940s or 1950s, but they are also equally necessary. Our wealth depends on them. To which the obvious reply is: well then why is it happening at universities? What’s the academic equivalent of global supply chains, containerized shipping, Japanese style “just in time” production quotas? It is not like education or teaching at universities has become all that more complicated than it was 50 years ago.


pages: 603 words: 182,781

Aerotropolis by John D. Kasarda, Greg Lindsay

3D printing, air freight, airline deregulation, airport security, Akira Okazaki, Asian financial crisis, back-to-the-land, barriers to entry, Berlin Wall, big-box store, blood diamonds, borderless world, Boris Johnson, British Empire, business cycle, call centre, carbon footprint, Cesare Marchetti: Marchetti’s constant, Charles Lindbergh, Clayton Christensen, cleantech, cognitive dissonance, commoditize, conceptual framework, credit crunch, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, deskilling, digital map, disruptive innovation, edge city, Edward Glaeser, failed state, food miles, Ford paid five dollars a day, Frank Gehry, fudge factor, full employment, future of work, Geoffrey West, Santa Fe Institute, George Gilder, global supply chain, global village, gravity well, Haber-Bosch Process, Hernando de Soto, hive mind, if you build it, they will come, illegal immigration, inflight wifi, intangible asset, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), intermodal, invention of the telephone, inventory management, invisible hand, Jane Jacobs, Jeff Bezos, Joan Didion, Kangaroo Route, Kickstarter, knowledge worker, kremlinology, low cost airline, Marchetti’s constant, Marshall McLuhan, Masdar, mass immigration, McMansion, megacity, Menlo Park, microcredit, Network effects, New Economic Geography, new economy, New Urbanism, oil shale / tar sands, oil shock, peak oil, Pearl River Delta, Peter Calthorpe, Peter Thiel, pets.com, pink-collar, pre–internet, RFID, Richard Florida, Ronald Coase, Ronald Reagan, Rubik’s Cube, savings glut, Seaside, Florida, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, spinning jenny, starchitect, stem cell, Steve Jobs, supply-chain management, sustainable-tourism, telepresence, the built environment, The Chicago School, The Death and Life of Great American Cities, The Nature of the Firm, thinkpad, Thomas L Friedman, Thomas Malthus, Tony Hsieh, trade route, transcontinental railway, transit-oriented development, traveling salesman, trickle-down economics, upwardly mobile, urban planning, urban renewal, urban sprawl, walkable city, white flight, white picket fence, Yogi Berra, zero-sum game

It’s the urban embodiment of an evolution from warehousing to distribution to logistics that took less than twenty years and saw it rise from a necessary evil to the front lines in an eternal war on costs and the competition. You can trace the shift in this thinking through title inflation, a local consultant explained. “When I started in the mid-eighties it was the ‘warehouse manager,’ ” he said. “Then it was the ‘assistant manager of logistics.’ Today, it’s the ‘SVP for global supply chain,’ and he might sit on the board of directors.” He or she likely sits on the boards of companies that decided they were better at logistics than anything else, such as Walmart, which achieves “everyday low prices” with a pythonlike squeeze on its suppliers. Everyone else, it seems, moved to Memphis or Louisville to let FedEx and UPS handle it for them. But the flowering of the distribution center carried unforeseen consequences for both cities.

Neither a Chinese nor an American company, Lenovo is managed by tag teams of executives dispersed throughout the world. No one has ever tried to run a $16 billion company on Skype calls, e-mail, and the occa-sional Paris rendezvous until now. The company calls this “worldsourcing.” “It’s about leveraging the best people, processes, and costs, no matter where they’re located,” says Gerry Smith, the American running its global supply chain from Singapore. “I have staff in Shenzhen, Raleigh, Baddi [India], and Brazil. I’m a lonely figure in Singapore. I’m here because I have the best airport in the world; we don’t need a brick-and-mortar headquarters to make decisions.” Neither does anyone else. Consultancies like McKinsey and Accenture have long since jettisoned theirs, and scores of multinationals act like they already have.

While Kasarda was still a student in 1968, he advanced the heretical idea that the size and reach of international trade and multinational firms had already surpassed the ability of any one nation to control them. The balance of power had been reversed; from now on, corporations would dictate the terms. Today, this is so patently true we have Tom Friedman’s “Dell Theory of Conflict Prevention,” which presupposes that no two countries with pieces of the same global supply chain—such as China, Taiwan, and Dell’s—will ever tempt economic suicide by warring. One of the main drivers behind the rise of multinationals and what Vernon called “globalism” was air travel, which “shrank the Atlantic crossing from four days to seven hours,” he wrote. “It turned transatlantic tourism from a rich man’s indulgence into a middle-class need. It opened up the possibility for international consultations on a day-to-day basis not only between the officials of governments but also between the engineers, controllers, salesmen and strategists of private firms.”


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The New Silk Roads: The Present and Future of the World by Peter Frankopan

active measures, Berlin Wall, bitcoin, blockchain, Boris Johnson, cashless society, clean water, cryptocurrency, Deng Xiaoping, don't be evil, Donald Trump, Ethereum, ethereum blockchain, F. W. de Klerk, failed state, Fall of the Berlin Wall, global supply chain, illegal immigration, income inequality, invisible hand, land reform, Mark Zuckerberg, mass incarceration, Nelson Mandela, purchasing power parity, ransomware, Rubik’s Cube, smart cities, South China Sea, sovereign wealth fund, trade route, trickle-down economics, UNCLOS, urban planning, WikiLeaks, zero-sum game

* The risks to the global economy in the event of a slowdown, correction or crash in China are obvious, given that China is ‘deeply embedded in global supply chains’, says the Bank of England report. There would be potential benefits – for example, a sharp reduction in some commodity prices like coal, steel and copper, as well as a fall in oil prices, leading to lower prices in the UK.129 Assessments like these presumably lie behind the aggressive stance on tariffs being adopted by the United States against China, with steps taken to put pressure on the economy to both weaken Beijing but strengthen consumers in the US at the same time. It also explains the robust attempt by China not only to issue economic countermeasures but to warn of the dangers of playing a game the consequences of which are hard to predict. The United States is ‘attacking the global supply chain’, said Ministry of Commerce spokesman Gao Feng, when asked about the introduction of yet more tariffs.


pages: 209 words: 80,086

The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton

active measures, affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, disruptive innovation, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial cluster, industrial robot, intangible asset, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, Paul Samuelson, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shared worldview, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor, zero-sum game

Take one of the major North American producers of mobile phones that started with basic manufacturing in China but, realizing the potential, rapidly moved their Chinese operations up the value chain to include designing both hardware and software. The company now has over 3,000 research engineers working in China who design and develop products for the global marketplace. We were told how the company had initially invested in manufacturing as part of plans to expand its global supply chain, but when senior American executives realized there were many talented engineers, they rapidly moved into leading-edge R&D. A Chinese manager based in Beijing observed how they moved from “coding work” and “customization” to research “fundamental architecture development, so we’ve created a lot of IPR [intellectual property rights] here in China.” The speed at which transnational companies included China in their blue-skies research that may not have immediate commercial application can also be seen from the example of a major Korean electronics company.

These initiatives are intended to create a better system of checks and balances that recognizes the legitimate claims of all stakeholders—employees, managers, consumer, shareholders, and local communities—that must tackle the way companies excessively profit from the global auction at the expense of working families. There are other possibilities such as that proposed by Barry Lynn, where antitrust laws could be used so that no corporation controls more than a quarter of the American market. The sourcing of goods in the global supply chain could also be limited to only a quarter of products from any one country, which could lead to greater openness in the global economy with workers in many countries being able to gain from it.24 Justice: Beyond Human Capital A new bargain is also more than a matter of equalizing opportunities to join occupational elites even if, as we’ve argued, moving toward a level playing field in the competition for a livelihood is a key policy goal.


pages: 269 words: 70,543

Tech Titans of China: How China's Tech Sector Is Challenging the World by Innovating Faster, Working Harder, and Going Global by Rebecca Fannin

Airbnb, augmented reality, autonomous vehicles, blockchain, call centre, cashless society, Chuck Templeton: OpenTable:, cloud computing, computer vision, connected car, corporate governance, cryptocurrency, data is the new oil, Deng Xiaoping, digital map, disruptive innovation, Donald Trump, El Camino Real, Elon Musk, family office, fear of failure, glass ceiling, global supply chain, income inequality, industrial robot, Internet of things, invention of movable type, Jeff Bezos, Kickstarter, knowledge worker, Lyft, Mark Zuckerberg, megacity, Menlo Park, money market fund, Network effects, new economy, peer-to-peer lending, personalized medicine, Peter Thiel, QR code, RFID, ride hailing / ride sharing, Sand Hill Road, self-driving car, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart transportation, Snapchat, social graph, software as a service, South China Sea, sovereign wealth fund, speech recognition, stealth mode startup, Steve Jobs, supply-chain management, Tim Cook: Apple, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, urban planning, winner-take-all economy, Y Combinator, young professional

“We are investing in cross-border even though there really is not a border for these innovations,” she said at a recent Silicon Dragon forum in the San Francisco Bay Area. David Lam, general partner at cross-border tech investment firm Atlantic Bridge, pointed out that any barrier is largely caused by politics. “Global supply chains are international, and the movement is unstoppable. It’s already happened. So it’s hard to turn back the clock. Some of the political leaders don’t necessarily share that view. They are the ones driving a lot of that policy and that does obviously create barriers, but they are more politically motivated than business motivated.” “Global supply chains are international, and the movement is unstoppable. It’s already happened. So it’s hard to turn back the clock.” David Lam General partner, Atlantic Bridge A US-China Venture Bridge Detours But the rifts are causing the bridge between Silicon Valley and China cross-border investing to be rerouted.


pages: 469 words: 132,438

Taming the Sun: Innovations to Harness Solar Energy and Power the Planet by Varun Sivaram

addicted to oil, Albert Einstein, asset-backed security, autonomous vehicles, bitcoin, blockchain, carbon footprint, cleantech, collateralized debt obligation, Colonization of Mars, decarbonisation, demand response, disruptive innovation, distributed generation, diversified portfolio, Donald Trump, Elon Musk, energy security, energy transition, financial innovation, fixed income, global supply chain, global village, Google Earth, hive mind, hydrogen economy, index fund, Indoor air pollution, Intergovernmental Panel on Climate Change (IPCC), Internet of things, M-Pesa, market clearing, market design, mass immigration, megacity, mobile money, Negawatt, off grid, oil shock, peer-to-peer lending, performance metric, renewable energy transition, Richard Feynman, ride hailing / ride sharing, Ronald Reagan, Silicon Valley, Silicon Valley startup, smart grid, smart meter, sovereign wealth fund, Tesla Model S, time value of money, undersea cable, wikimedia commons

One of the reasons that off-grid solar has taken off in East Africa is that tariffs and import duties there are relatively low, which enables Off-Grid Electric and other firms to import components of their solar systems from all over the world and move them freely between their bases of operation in Tanzania and Rwanda. In West Africa, by contrast, higher tariffs and duties make it more complicated and expensive to operate a global supply chain, ultimately raising the cost of off-grid solar. So a lesson for countries seeking to harness off-grid solar to improve domestic energy access is to tear down trade barriers that might artificially increase the cost of solar systems. Getting governments out of the way of innovation is a foundational requirement in order for public policy to enable off-grid solar deployment, but for the sector to flourish, it will need active support.

(Before making recommendations abroad, however, the United States must invest in innovation at home, and President Trump should walk back his pledge to pull out of the Paris Agreement on Climate Change in 2020, a move that would destroy U.S. credibility with international partners.) And the United States should reduce trade barriers, opting instead to foster a globalized solar industry. These steps might appear to help the competition. But this is a competition that plays to U.S. strengths. Indeed, in other innovation-led industries, such as semiconductor manufacturing, U.S. firms command global supply chains and invest liberally in the next technology generation. The United States is fully capable of transforming solar—from how it is financed, to what it looks like, to how flexible the system that it plugs into is—and enjoying the benefits of doing so. President Trump should rethink his administration’s priorities. Energy innovation remains a goal that is just as rational and bipartisan today as it was when both sides of the aisle resoundingly applauded the creation of ARPA-E.

At the time of writing, the Trump administration was preparing to erect additional, sweeping trade barriers to imported silicon solar cells and panels from around the world, relying on the rarely invoked Section 201 of the 1974 Trade Act. But trade barriers are blunt, destructive tools that should be only a small component of America’s innovation strategy. Deployed recklessly, they can provoke trade wars that might stymie U.S. chances of taking the helm of an innovative industry with a global supply chain along which goods, services, and capital can flow efficiently across borders.51 Rather than retreating within its borders, America should embrace the chance to reshape the global solar industry in its innovative image. There are important differences between solar panels and semiconductors, and the business model of the latter may not translate exactly to the former. But that is no excuse to accept the current industry’s culture of painfully slow technology progress, especially given the exciting advances emerging from top labs around the world.


pages: 524 words: 155,947

More: The 10,000-Year Rise of the World Economy by Philip Coggan

"Robert Solow", accounting loophole / creative accounting, Ada Lovelace, agricultural Revolution, Airbnb, airline deregulation, Andrei Shleifer, anti-communist, assortative mating, autonomous vehicles, bank run, banking crisis, banks create money, basic income, Berlin Wall, Bob Noyce, Branko Milanovic, Bretton Woods, British Empire, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, Celtic Tiger, central bank independence, Charles Lindbergh, clean water, collective bargaining, Columbian Exchange, Columbine, Corn Laws, credit crunch, Credit Default Swap, crony capitalism, currency peg, debt deflation, Deng Xiaoping, discovery of the americas, Donald Trump, Erik Brynjolfsson, European colonialism, eurozone crisis, falling living standards, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, Frederick Winslow Taylor, full employment, germ theory of disease, German hyperinflation, gig economy, Gini coefficient, global supply chain, global value chain, Gordon Gekko, greed is good, Haber-Bosch Process, Hans Rosling, Hernando de Soto, hydraulic fracturing, Ignaz Semmelweis: hand washing, income inequality, income per capita, indoor plumbing, industrial robot, inflation targeting, Isaac Newton, James Watt: steam engine, job automation, John Snow's cholera map, joint-stock company, joint-stock limited liability company, Kenneth Arrow, Kula ring, labour market flexibility, land reform, land tenure, Lao Tzu, large denomination, liquidity trap, Long Term Capital Management, Louis Blériot, low cost airline, low skilled workers, lump of labour, M-Pesa, Malcom McLean invented shipping containers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Mikhail Gorbachev, mittelstand, moral hazard, Murano, Venice glass, Myron Scholes, Nelson Mandela, Network effects, Northern Rock, oil shale / tar sands, oil shock, Paul Samuelson, popular capitalism, popular electronics, price stability, principal–agent problem, profit maximization, purchasing power parity, quantitative easing, railway mania, Ralph Nader, regulatory arbitrage, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, Second Machine Age, secular stagnation, Silicon Valley, Simon Kuznets, South China Sea, South Sea Bubble, special drawing rights, spice trade, spinning jenny, Steven Pinker, TaskRabbit, Thales and the olive presses, Thales of Miletus, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, transatlantic slave trade, transcontinental railway, Triangle Shirtwaist Factory, universal basic income, Unsafe at Any Speed, Upton Sinclair, V2 rocket, Veblen good, War on Poverty, Washington Consensus, Watson beat the top human players on Jeopardy!, women in the workforce, Yom Kippur War, zero-sum game

When General Motors and Chrysler flirted with collapse in 2009, one of the reasons for a government rescue was that jobs were also at risk at the companies that supplied parts (such as tyres or headlights) to the industry.46 The Motor and Equipment Manufacturers Association (MEMA) estimated that, as of 2018, more than 871,000 American jobs were linked to the creation of cars and trucks.47 Furthermore, these supply chains are international. While it is common to talk of the US or German car industries, these manufacturers depend on global supply chains. Parts may cross international borders many times before they are assembled into the finished product.48 Perhaps 30–50% of the trade in manufactured goods occurs within individual multinational companies.49 As they became aware of this, many developing countries slashed their tariffs so that they could become part of these global value chains. MEMA estimates that around a third of all the parts that make US cars are imported, while in Germany, the proportion is 45%.50 Why have car manufacturers done this?

The port of Felixstowe owed its rapid rise to a union ban on containers in London ports. In turn, this meant that manufacturing companies moved, since they no longer needed to rent expensive space in big cities in order to be near the docks. The result was a huge decline in blue-collar jobs in areas like Manhattan and east London. Without containerisation, it would be impossible to run the kind of global supply chains that multinationals operate. Indeed, it would also be impossible for companies to have low inventory levels; they can have minimal supplies of stocks because they know they can resupply themselves quickly. All this from the adoption of a humble metal box. Jet-setters If we could transport our great-great grandparents forward in time, what might surprise and alarm them most? It could, of course, be the sheer volume and speed of traffic on the roads.

In 2009, it reshuffled the bosses of China’s three largest airlines, and, in 2010, did the same for the oil companies.9 Purely private companies have succeeded in China but they have to tread carefully. Several executives were arrested in a corruption crackdown in 2015–17.10 In its earliest growth phase, China concentrated on the low-value goods where its low wages gave it a clear competitive advantage. By 1990, it had become the world’s largest textile exporter.11 Later on, the country moved into electronics and became a key part of the global supply chain. By 2018, China was home to more than half of the world’s manufacturing capacity for electronics. Foxconn, which is Apple’s largest supplier, employs 250,000 people in Shenzhen alone.12 When Lenovo, the Chinese technology group, bought IBM’s personal computer business in 2004, it seemed a symbolic power shift from west to east. As South Korea and Taiwan had done in the post-war period, China launched an export drive, with its share of global exports rising from 1% in 1980 to 14% in 2015.13 This was accompanied by an astonishingly high savings rate, which rose from 35% of GDP in the 1980s to 41% in the 1990s and 53% in 2007.14 These savings translated into high rates of investment, as China built massive cities, factories, roads and power stations – in some cases virtually from scratch.


The Toaster Project: Or a Heroic Attempt to Build a Simple Electric Appliance From Scratch by Thomas Thwaites

carbon footprint, global supply chain, invisible hand, lateral thinking, supply-chain management, The Wealth of Nations by Adam Smith

Guided by my (evidently misguided) belief that cheapness begets simplicity, I chose as my exemplar toaster the: Argos Value Range 2-Slice White Toaster Cat. # 421/9608 £3.94 — Which includes: • Coolwall • Variable browning control • Mid-cycle cancel • Cord storage — A great value toaster, which embodies the centuries of incremental technological development, rising material wealth, and diverse global supply chains on which modern life depends. A must for any well-appointed kitchen! It doesn’t have a crumb tray, though. Rule 2. I must make all the parts of my toaster starting from scratch. What does from scratch mean? From scratch means making something starting from the very beginning. What does starting from the very beginning mean? Starting from the very beginning means starting with nothing.


pages: 282 words: 88,320

Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry by David Robertson, Bill Breen

barriers to entry, business process, Clayton Christensen, creative destruction, crowdsourcing, Dean Kamen, disruptive innovation, financial independence, game design, global supply chain, Jeff Bezos, Kickstarter, Mark Zuckerberg, Minecraft, Rubik’s Cube, Silicon Valley, Steve Jobs, The Wisdom of Crowds, Wall-E

From a professional angle, it was an exciting opportunity.” Once ensconced at LEGO, Knudstorp became a kind of at-large strategist who roved throughout the company, taking on different assignments as new challenges arose: collaborating with the management team of LEGOLAND to improve the theme parks’ performance, developing an action plan for building out the company’s nascent line of retail stores, deconstructing its global supply chain and recommending improvements. Acting on his belief that “relationships are just as important as results,” Knudstorp formed many critical ties across what was then a heavily compartmentalized organization. Within six months of arriving at LEGO, Knudstorp began reporting directly to the chief operating officer, Poul Plougmann. The theme park and LEGO store projects, in particular, frequently engaged him with Kjeld Kirk Kristiansen, the company’s president.

“It was the failing performance of nearly the entire LEGO portfolio.” As Knudstorp dug deeper into the LEGO Group’s malaise, he found the company’s problems were far more systemic than a falling U.S. currency and a failed Christmas. First and foremost, the company’s management team, which consisted of twelve senior vice presidents who oversaw six market regions as well as such traditional functions as the direct-to-consumer business and the global supply chain, was “highly dysfunctional,” recalled Knudstorp. “They didn’t work together. They operated in silos.” The chill from the executive suite often frosted the company’s retail partners, who regarded LEGO as aloof and largely uncaring. Knudstorp also found the company’s designers and developers chronically failed to grasp the business implications of their actions. And too many managers did a poor job of allocating responsibilities and carrying out decisions.


pages: 1,373 words: 300,577

The Quest: Energy, Security, and the Remaking of the Modern World by Daniel Yergin

"Robert Solow", addicted to oil, Albert Einstein, Asian financial crisis, Ayatollah Khomeini, banking crisis, Berlin Wall, bioinformatics, borderless world, BRICs, business climate, carbon footprint, Carmen Reinhart, cleantech, Climategate, Climatic Research Unit, colonial rule, Colonization of Mars, corporate governance, cuban missile crisis, data acquisition, decarbonisation, Deng Xiaoping, Dissolution of the Soviet Union, diversification, diversified portfolio, Elon Musk, energy security, energy transition, Exxon Valdez, facts on the ground, Fall of the Berlin Wall, fear of failure, financial innovation, flex fuel, global supply chain, global village, high net worth, hydraulic fracturing, income inequality, index fund, informal economy, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), James Watt: steam engine, John von Neumann, Kenneth Rogoff, life extension, Long Term Capital Management, Malacca Straits, market design, means of production, megacity, Menlo Park, Mikhail Gorbachev, Mohammed Bouazizi, mutually assured destruction, new economy, Norman Macrae, North Sea oil, nuclear winter, off grid, oil rush, oil shale / tar sands, oil shock, Paul Samuelson, peak oil, Piper Alpha, price mechanism, purchasing power parity, rent-seeking, rising living standards, Robert Metcalfe, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Sand Hill Road, shareholder value, Silicon Valley, Silicon Valley startup, smart grid, smart meter, South China Sea, sovereign wealth fund, special economic zone, Stuxnet, technology bubble, the built environment, The Nature of the Firm, the new new thing, trade route, transaction costs, unemployed young men, University of East Anglia, uranium enrichment, William Langewiesche, Yom Kippur War

The result was the worst nuclear accident since the explosion at the Chernobyl nuclear plant in Soviet Ukraine a quarter century earlier. The Fukushima accident, compounded by damage to other electric generating plants in the area, led to power shortages, forcing rolling blackouts that demonstrated the vulnerability of modern society to a sudden shortage of energy supply. The effects were not limited to one country. The loss of industrial production in Japan disrupted global supply chains, halting automobile and electronics production in North America and Europe, and hitting the global economy. The accident at Fukushima threw a great question mark over the “global nuclear renaissance,” which many had thought essential to help meet the power needs of a growing world economy. On the other side of the world, a very different kind of crisis was unfolding. It had been triggered a few months earlier not by the clash of tectonic plates, but by a young fruit seller in the Tunisian town of Sidi Bouzid.

American and European companies were setting up supply chains that gathered components from different parts of the world, assembled them in still other parts, and then packed the finished goods into containers and shipped them across oceans to customers anywhere in the world. Although China did not formally join the WTO until 2001, it had by then already become the linchpin in this new system of global supply chains. As factories went up all along the coastal region, the inscription “Made in China” became ubiquitous on all sorts of products shipped all over the world. China had now become what was said of Britain two centuries earlier—“the workshop of the world.” In due course, these new trade and investment linkages would have much greater impact on world energy than anyone might have imagined. For any workshop needs energy on which to run, and this new workshop of the world would run on fossil fuels.

The storms showed how fundamental was the integrity of the electricity system on which the operation of everything else depended, be it the refineries and communications systems, or the pipelines that take supplies to the rest of the country—or the gas stations, which lacked the electric power to operate their pumps. The huge earthquake and tsunami that struck Japan in 2011 killed more than 15,000 people, devastated a major part of the country, and set off a nuclear accident. It also took down the region’s power system, knocking out services, immobilizing communication and transportation, disrupting the economy and global supply chains, and paralyzing efforts to respond to the tragedy. In China, India, and other developing countries, chronic shortages of electric power demonstrate the costs of unreliability. The Internet and reliance on complex information-technology systems have created a whole new set of vulnerabilities for energy and electric power infrastructure around the world by creating entry paths for those who wish to disrupt those systems.


pages: 596 words: 163,682

The Third Pillar: How Markets and the State Leave the Community Behind by Raghuram Rajan

activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, airline deregulation, Albert Einstein, Andrei Shleifer, banking crisis, barriers to entry, basic income, battle of ideas, Bernie Sanders, blockchain, borderless world, Bretton Woods, British Empire, Build a better mousetrap, business cycle, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, computer vision, conceptual framework, corporate governance, corporate raider, corporate social responsibility, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, currency manipulation / currency intervention, data acquisition, David Brooks, Deng Xiaoping, desegregation, deskilling, disruptive innovation, Donald Trump, Edward Glaeser, facts on the ground, financial innovation, financial repression, full employment, future of work, global supply chain, high net worth, housing crisis, illegal immigration, income inequality, industrial cluster, intangible asset, invention of the steam engine, invisible hand, Jaron Lanier, job automation, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, labor-force participation, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, means of production, moral hazard, Network effects, new economy, Nicholas Carr, obamacare, Productivity paradox, profit maximization, race to the bottom, Richard Thaler, Robert Bork, Robert Gordon, Ronald Reagan, Sam Peltzman, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, South China Sea, South Sea Bubble, Stanford marshmallow experiment, Steve Jobs, superstar cities, The Future of Employment, The Wealth of Nations by Adam Smith, trade liberalization, trade route, transaction costs, transfer pricing, Travis Kalanick, Tyler Cowen: Great Stagnation, universal basic income, Upton Sinclair, Walter Mischel, War on Poverty, women in the workforce, working-age population, World Values Survey, Yom Kippur War, zero-sum game

More generally, even as they outsource the low-value-added manufacturing segments of the production chain, developed countries retain the high-value-added and profitable premanufacturing segments like R&D and the equally profitable post-manufacturing segments like marketing and finance.13 Such a division of labor is not unattractive to emerging markets that are trying to move up the complexity chain to build more technology-intensive products. Since the early 1990s, the possibility of participating in global supply chains has convinced a number of these countries to lower their tariffs, improve their business environment, sign treaties protecting foreign investment, and enhance their protection of intellectual property. This has eased the way for more segments of the value chain to be moved to emerging markets. Even while developed-country firms are outsourcing manufacturing to the emerging markets, emerging-market firms have been relying on developed-country firms for R&D and design.

Highly educated and creative designers, scientists, and engineers, as well as advertising and marketing mavens now have a world market. Initially, this has favored the highly educated and skilled in developed countries, much as has technological development. As emerging markets train their own people well (with students often finishing with an advanced degree from a developed country), capabilities are migrating to the rest of the world. The highly educated and skilled everywhere now compete for business from global supply chains. In some countries, their wage differential relative to others, while high, is plateauing or even falling.15 The losers are clearer: the moderately educated workers in developed countries. When the supply chain was entirely in the developed country, they benefited from the competitive edge that developed-country design or R&D gave them. Their jobs were safe, protected by the indivisibility of the production process, which allowed them to bargain for higher pay, lower and more predictable work hours, and more safeguards at work.

Also, to the extent that countries continue adhering to international agreements when the government changes—which will be the case if there are significant costs to domestic industry of withdrawing from commitments—it gives firms across the world predictability of tariffs over time, and thus a stronger incentive to invest. As we have seen, such a low tariff regime has proven so attractive that a number of emerging markets have lowered tariffs significantly so that their producers can become part of global supply chains. All this is to suggest that we should resist the populist nationalist turn to protectionism, and redouble our efforts to lower tariffs globally. The merits of cross-border flows other than those of goods and services are more uncertain and contingent on circumstances. As a series of financial crises have shown us, capital flows into a country are not an unmitigated blessing, especially if the flows are short-term in nature, and the country has poorly developed financial markets and institutions.


pages: 382 words: 100,127

The Road to Somewhere: The Populist Revolt and the Future of Politics by David Goodhart

Affordable Care Act / Obamacare, agricultural Revolution, assortative mating, Big bang: deregulation of the City of London, borderless world, Boris Johnson, Branko Milanovic, Bretton Woods, British Empire, call centre, capital controls, carbon footprint, central bank independence, centre right, coherent worldview, corporate governance, credit crunch, deglobalization, deindustrialization, Donald Trump, Downton Abbey, Edward Glaeser, en.wikipedia.org, Etonian, European colonialism, eurozone crisis, falling living standards, first-past-the-post, gender pay gap, gig economy, glass ceiling, global supply chain, global village, illegal immigration, income inequality, informal economy, job satisfaction, knowledge economy, labour market flexibility, low skilled workers, market friction, mass immigration, mittelstand, Neil Kinnock, New Urbanism, non-tariff barriers, North Sea oil, obamacare, old-boy network, open borders, Peter Singer: altruism, post-industrial society, post-materialism, postnationalism / post nation state, race to the bottom, Richard Florida, Ronald Reagan, selection bias, shareholder value, Skype, Sloane Ranger, stem cell, Thomas L Friedman, transaction costs, trickle-down economics, ultimatum game, upwardly mobile, wages for housework, white flight, women in the workforce, working poor, working-age population, World Values Survey

British manufacturing now has comparatively few large, domestically headquartered companies—many have been broken up and sold off: GEC, Lucas, TI, ICI (see below). There are now fewer than 2,000 factories employing more than 200 workers and about one third of manufacturing jobs are in foreign owned companies. Foreign ownership can be a great blessing—just think of Nissan in Sunderland—but foreign owned companies often have ‘ambitions limited by their role in global supply chains … and small UK manufacturers are routinely exposed to the sourcing decisions of overseas multinationals and the vagaries of economic decisions that are beyond their control,’ as the CRESC ‘Rebalancing’ paper referred to earlier puts it.48 Of course any modern economy has to be a relatively open one—consider how when the pound fell after the Brexit vote the FTSE100 share index rose because so many of those big companies’ earnings and assets are in dollars or Euros which are now more valuable in relation to sterling.

Meanwhile, the rapidity of industrial decline has created so-called ‘broken supply chains’, meaning even successful manufacturers have to source most of the product from elsewhere. JCB, often cited as a great British success story, has seen the British content of its diggers decline from almost 100 per cent in 1979 to about one third today. Similarly Dyson vacuum cleaners outsources everything except design. Global supply chains are a common feature of today’s global companies but according to CRESC British manufacturers import far more than their German counterparts.50 The Dyson effect can deliver dynamism, but only in a few pockets as British industry returns to a small workshop base last seen in the early stages of the industrial revolution—and such units are too small to combat weak export performance or high import penetration.


pages: 116 words: 32,712

Making a Killing: The Deadly Implications of the Counterfeit Drug Trade by Roger Bate

global supply chain, interchangeable parts, RFID, Sam Peltzman, supply-chain management

Individual pharmaceutical firms have also taken steps to resist counterfeit drugs. Many have begun to implement track-and-trace technology on their drugs to provide an effective “e-pedigree” to distributors and consumers. Some have experimented with using radio frequency identification (RFID) technology to check the e-pedigrees of drug shipments, although, in the United States, this is not yet required by the FDA.101 To help secure the complex, vulnerable global supply chain, many drug companies have implemented their own security measures. Pfizer announced in December 2003 that all distributors in the United States selling its products would have to purchase them directly from the company or from selected wholesalers.102 In September 2006, Pfizer announced that it would cease selling drugs to eighteen wholesalers in the United Kingdom and instead distribute drugs there only through UniChem.103 These moves are attempts to cut down the size of the secondary wholesale market, which includes sales among wholesalers.104 Other pharmaceutical firms will need to secure their own supply chains and alert the public when they become aware of counterfeit drugs.


pages: 118 words: 35,663

Smart Machines: IBM's Watson and the Era of Cognitive Computing (Columbia Business School Publishing) by John E. Kelly Iii

AI winter, call centre, carbon footprint, crowdsourcing, demand response, discovery of DNA, disruptive innovation, Erik Brynjolfsson, future of work, Geoffrey West, Santa Fe Institute, global supply chain, Internet of things, John von Neumann, Mars Rover, natural language processing, optical character recognition, pattern recognition, planetary scale, RAND corporation, RFID, Richard Feynman, smart grid, smart meter, speech recognition, Turing test, Von Neumann architecture, Watson beat the top human players on Jeopardy!

VARIETY Over the past decade or so, computer scientists and mathematicians have become quite proficient at handling specific types of data by using specialized tools that do one thing very well. For example, a sales manager can employ data analytics software to reveal past sales trends and forecast future sales, using a specific tool for a specific data type. But that approach doesn’t work for complex operational challenges such as managing cities, global supply chains, or power grids, where many interdependencies exist and many different kinds of data have to be taken into consideration. What’s required is a holistic approach to data management and analysis. You have to be able to mash together different kinds of data and act on them with different kinds of tools. An early example of this approach is a project that IBM researchers in New York and Brazil completed on behalf of the city of Rio de Janeiro.


pages: 459 words: 103,153

Adapt: Why Success Always Starts With Failure by Tim Harford

Andrew Wiles, banking crisis, Basel III, Berlin Wall, Bernie Madoff, Black Swan, car-free, carbon footprint, Cass Sunstein, charter city, Clayton Christensen, clean water, cloud computing, cognitive dissonance, complexity theory, corporate governance, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, Dava Sobel, Deep Water Horizon, Deng Xiaoping, disruptive innovation, double entry bookkeeping, Edmond Halley, en.wikipedia.org, Erik Brynjolfsson, experimental subject, Fall of the Berlin Wall, Fermat's Last Theorem, Firefox, food miles, Gerolamo Cardano, global supply chain, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, Jane Jacobs, Jarndyce and Jarndyce, Jarndyce and Jarndyce, John Harrison: Longitude, knowledge worker, loose coupling, Martin Wolf, mass immigration, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Netflix Prize, New Urbanism, Nick Leeson, PageRank, Piper Alpha, profit motive, Richard Florida, Richard Thaler, rolodex, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, South China Sea, special economic zone, spectrum auction, Steve Jobs, supply-chain management, the market place, The Wisdom of Crowds, too big to fail, trade route, Tyler Cowen: Great Stagnation, web application, X Prize, zero-sum game

Despite his Herculean efforts to duplicate the technology, Thomas Thwaites’s toaster looks more like a toaster-shaped birthday cake than a real toaster, its coating dripping and oozing like an icing job gone wrong. ‘It warms bread when I plug it into a battery,’ he told me, brightly. ‘But I’m not sure what will happen if I plug it into the mains.’ Eventually, he summoned up the courage to do so. Two seconds later, the toaster was toast. 2 Problem solving in a complicated world The modern world is mind-bogglingly complicated. Far simpler objects than a toaster involve global supply chains and the coordinated efforts of many individuals, scattered across the world. Many do not even know the final destination of their efforts. As a lumberjack fells a giant of the Canadian forest, he doesn’t know whether the tree he topples will make bed frames or pencils. At the vast Chuquicamata mine in Chile, a yellow truck the size of a house growls up an incline blasted into the landscape; the driver does not trouble himself to ask whether the copper ore he carries is destined for the wiring of a toaster or the casing of a bullet.

Orgel’s law tells us that economic evolution, with the playing field tilted by the new rule, ‘Greenhouse gases are expensive’, will produce entirely unexpected ways to reduce greenhouse gases. It’s probably a safe bet that cars would become more efficient, buildings would be built with more insulation and passive heating and cooling systems, and that we’d see more use of technologies such as nuclear, hydroelectric and even ‘carbon capture’ – preventing carbon dioxide emerging from a coal-fired power station. But what other changes we might see, who knows? Global supply chains might be reconfigured. Hundreds of millions of people might move to places where the climate or the geography allows a more energy-efficient lifestyle. Or world-saving ideas could emerge from even more unexpected sources. If there was some way to reduce the methane being belched out by cows and sheep – almost a tenth of the total contribution to greenhouse gas emissions – then that would be a huge achievement.


pages: 427 words: 112,549

Freedom by Daniel Suarez

augmented reality, big-box store, British Empire, Burning Man, business intelligence, call centre, cloud computing, corporate personhood, digital map, game design, global supply chain, illegal immigration, Naomi Klein, new economy, Pearl River Delta, plutocrats, Plutocrats, private military company, RFID, special economic zone, speech recognition, Stewart Brand, telemarketer, the scientific method, young professional

"We were, in fact, going to cover that later in our presentation." He started clicking through interminable bullet points and diagrams. "We also project reductions in export crops such as cotton in Asia and Russia. Security services in various countries are reporting labor unrest in both the agricultural and industrial sectors. The number of container ships being placed into warm and cold layup from lack of cargo is rising." It's tearing apart the global supply chain. Staring at the screen, The Major could visualize it like a full-scale nuclear attack. But one that the average person wouldn't notice--until it was beyond the tipping point. The British chap took over. "We project that if corn and soybean harvests drop another seven percent, raw material costs for almost all processed food products will skyrocket. Low-wage factory workers around the world could suffer food shortages, with attendant increase in social unrest.

But then some clever bastard figured out how to make crops inedible. My family's been doing industrial farming for forty years and all it produces is debt, pollution, and water shortages. It ruins the land and the people on it." Ross nodded to the uniform fields out the window. "You think these other farmers will change?" "They'll have no choice. Gas is, what--eighteen bucks a gallon now? Industrial farming and the global supply chain gobble up fossil fuel." He peeled off each item with his fingers. "Natural gas in the fertilizers, petroleum-based pesticides, fuel for the tractors, more fuel for transport to food processors, fuel to process the raw crops into food additives, then to manufacture them into products, and then to transport the products across the country or world to be consumed--thirteen hundred miles on average."


Capitalism, Alone: The Future of the System That Rules the World by Branko Milanovic

"Robert Solow", affirmative action, Asian financial crisis, assortative mating, barriers to entry, basic income, Berlin Wall, bilateral investment treaty, Black Swan, Branko Milanovic, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carried interest, colonial rule, corporate governance, creative destruction, crony capitalism, deindustrialization, dematerialisation, Deng Xiaoping, discovery of the americas, European colonialism, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, ghettoisation, gig economy, Gini coefficient, global supply chain, global value chain, high net worth, income inequality, income per capita, invention of the wheel, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, labor-force participation, laissez-faire capitalism, land reform, liberal capitalism, low skilled workers, Lyft, means of production, new economy, offshore financial centre, Paul Samuelson, plutocrats, Plutocrats, post-materialism, purchasing power parity, remote working, rent-seeking, ride hailing / ride sharing, Silicon Valley, single-payer health, special economic zone, The Wealth of Nations by Adam Smith, Thorstein Veblen, uber lyft, universal basic income, Vilfredo Pareto, Washington Consensus, women in the workforce, working-age population, Xiaogang Anhui farmers

What has become crucial for the success of developing countries is no longer to develop through various predetermined stages using their own economic policies, but to become part of the global supply chains organized by the center (the Global North). And moreover, not merely to go into higher value-added stages by copying what richer countries are doing, but, as China is doing now, to become technological leaders themselves. The second unbundling has made it possible to skip the stages that were earlier thought necessary. As recently as the 1980s, it was unthinkable that countries that were overwhelmingly rural and poor, like India and China, would within two or three generations become technological leaders, or at least come close to the production possibility frontier in some areas. Thanks to their insertion into global supply chains, it became a reality. The way to interpret Asia’s success in the current era is not by seeing China, India, Indonesia, Thailand, and so on as the latest versions of South Korea.


pages: 338 words: 104,684

The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy by Stephanie Kelton

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, Asian financial crisis, bank run, Bernie Madoff, Bernie Sanders, blockchain, Bretton Woods, business cycle, capital controls, central bank independence, collective bargaining, COVID-19, Covid-19, currency manipulation / currency intervention, currency peg, David Graeber, David Ricardo: comparative advantage, decarbonisation, deindustrialization, discrete time, Donald Trump, eurozone crisis, fiat currency, floating exchange rates, Food sovereignty, full employment, Gini coefficient, global reserve currency, global supply chain, Hyman Minsky, income inequality, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, Isaac Newton, Jeff Bezos, liquidity trap, Mahatma Gandhi, manufacturing employment, market bubble, Mason jar, mortgage debt, Naomi Klein, new economy, New Urbanism, Nixon shock, obamacare, open economy, Paul Samuelson, Ponzi scheme, price anchoring, price stability, pushing on a string, quantitative easing, race to the bottom, reserve currency, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, trade liberalization, urban planning, working-age population, Works Progress Administration, yield curve, zero-sum game

Many developing countries also lack the ability—or have been told they don’t have the ability—to produce enough food, energy, and medicine to meet their own domestic demand. So, they rely on developed countries to supply them with imports of food, energy, and medicine. And, as we’ve discussed, they almost always need US dollars to pay for those crucial imports. As MMT economist Fadhel Kaboub has argued, this position at the bottom of global supply chains brings fundamental economic problems—many of them arising from the historical legacy of colonization itself.23 Exporting cheap labor and commodities, while importing expensive high-value items, tends to leave developing countries with perpetual trade deficits. The problem is that there isn’t a robust, permanent appetite for developing countries’ financial assets or real estate. Economists say that they lack deep capital markets.

Tcherneva, “Unemployment: The Silent Epidemic,” Working Paper No. 895, Levy Economics Institute of Bard College, August 2017, www.levyinstitute.org/pubs/wp_895.pdf. 14. US Department of Labor, “Trade Adjustment Assistance for Workers” (webpage), www.doleta.gov/tradeact/. 15. Candy Woodall, “Harley-Davidson Workers Say Plant Closure after Tax Cut Is Like a Bad Dream,” USA Today, May 27, 2018, updated May 28, 2018, www.usatoday.com/story/money/nation-now/2018/05/27/harley-davidson-layoffs/647199002/. 16. Committee on Decent Work in Global Supply Chains, “Resolution and Conclusions Submitted for Adoption by the Conference,” International Labour Conference, ILO, 105th Session, Geneva, May–June 2016, www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_489115.pdf. 17. Office of the Historian, “Nixon and the End of the Bretton Woods System, 1971–1973,” Milestones: 1969–1976, history.state.gov/milestones/1969-1976/nixon-shock. 18.


pages: 443 words: 112,800

The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World by Jeremy Rifkin

"Robert Solow", 3D printing, additive manufacturing, Albert Einstein, American ideology, barriers to entry, borderless world, carbon footprint, centre right, collaborative consumption, collaborative economy, Community Supported Agriculture, corporate governance, decarbonisation, distributed generation, en.wikipedia.org, energy security, energy transition, global supply chain, hydrogen economy, income inequality, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, job automation, knowledge economy, manufacturing employment, marginal employment, Martin Wolf, Masdar, megacity, Mikhail Gorbachev, new economy, off grid, oil shale / tar sands, oil shock, open borders, peak oil, Ponzi scheme, post-oil, purchasing power parity, Ray Kurzweil, Ronald Reagan, scientific worldview, Silicon Valley, Simon Kuznets, Skype, smart grid, smart meter, Spread Networks laid a new fibre optics cable between New York and Chicago, supply-chain management, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, transaction costs, trickle-down economics, urban planning, urban renewal, Yom Kippur War, Zipcar

The next day the New York Times and other newspapers around the county recounted what had happened in Boston, dubbing the event “The Boston Oil Party of 1973.”2 THE ENDGAME FOR THE SECOND INDUSTRIAL REVOLUTION Thirty-five years later in July 2008, the price of oil on the world market peaked at a record $147 per barrel.3 Just seven years earlier, oil was selling at under $24 per barrel.4 In 2001, I suggested that an oil crisis was in the making and that the price of oil might tip over $50 per barrel within a few short years. My comments were greeted with widespread skepticism and even derision. “Not in our lifetime” came the retort from the oil industry, as well as most geologists and economists. Shortly thereafter, the price of oil dramatically rose. When the price went over $70 per barrel in mid-2007, the price of products and services across the entire global supply chain began to rise as well, for the simple reason that virtually every commercial activity in our global economy is dependent on oil and other fossil fuel energies.5 We grow our food in petrochemical fertilizers and pesticides. Most of our construction materials—cement, plastics, and so on—are made of fossil fuels, as are most of our pharmaceutical products. Our clothes, for the most part, are made from petrochemical synthetic fibers.

Millions of people all over the world were more than happy to provide the goods and produce the services in return for our dollars. The global buying spree and the dramatic rise in aggregate output that accompanied it pushed up the demand for an ever-dwindling oil supply, resulting in a steep increase in prices on world markets. The sharp acceleration in the price of oil triggered price hikes across the global supply chain for everything from grain to gasoline, finally leading to a worldwide collapse of purchasing power when oil hit a record $147 per barrel in July 2008. Sixty days later, the banking community, awash in unpaid loans, shut off credit; the stock market crashed, and globalization came to a standstill. The upshot of eighteen years of living off extended credit is that the United States is now a failed economy.


pages: 453 words: 117,893

What Would the Great Economists Do?: How Twelve Brilliant Minds Would Solve Today's Biggest Problems by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, low-wage service sector, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

The Chinese government is actively investing in innovation. R&D spending has increased rapidly. China is predicted to surpass even US R&D spending in the coming years. Of course, it’s not just what is spent or the number of patents filed that determines innovation. It’s how useful these inventions are. And that data does not yet exist for China. To complicate matters, much manufacturing now involves global supply chains. For instance, half of China’s exports are made by foreign-invested enterprises, so it’s multinational companies that are producing in China as well as domestic firms. Harvard economist Dani Rodrik estimated that the value of Chinese exports suggests that they come from a country with a much higher per capita income. Does that mean that China produces innovative exports or is it a place for global assembly?

The statistics tell the story: in 2011 just 6 per cent of the population had access to a mobile device and only about 10 per cent had a bank account. Decades of military rule have left Myanmar underdeveloped and one of the poorest countries in Asia. But that also means that, with the right sorts of institutional reforms, it has significant potential to grow quickly. It sits in the world’s fastest-growing region with well-established global supply chains, which can help an economy industrialize and grow rapidly if it is part of the worldwide manufacturing network. Unlike many smaller countries in developing Asia, Myanmar, with a population similar in size to that of South Korea, can utilize a significant home market to promote growth as well as expand its exports. This explains the interest of many multinational corporations who eye an under-served market.


pages: 374 words: 113,126

The Great Economists: How Their Ideas Can Help Us Today by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

The Chinese government is actively investing in innovation. R&D spending has increased rapidly. China is predicted to surpass even US R&D spending in the coming years. Of course, it’s not just what is spent or the number of patents filed that determines innovation. It’s how useful these inventions are. And that data does not yet exist for China. To complicate matters, much manufacturing now involves global supply chains. For instance, half of China’s exports are made by foreign-invested enterprises, so it’s multinational companies that are producing in China as well as domestic firms. Harvard economist Dani Rodrik estimated that the value of Chinese exports suggests that they come from a country with a much higher per capita income. Does that mean that China produces innovative exports or is it a place for global assembly?

The statistics tell the story: in 2011 just 6 per cent of the population had access to a mobile device and only about 10 per cent had a bank account. Decades of military rule have left Myanmar underdeveloped and one of the poorest countries in Asia. But that also means that, with the right sorts of institutional reforms, it has significant potential to grow quickly. It sits in the world’s fastest-growing region with well-established global supply chains, which can help an economy industrialize and grow rapidly if it is part of the worldwide manufacturing network. Unlike many smaller countries in developing Asia, Myanmar, with a population similar in size to that of South Korea, can utilize a significant home market to promote growth as well as expand its exports. This explains the interest of many multinational corporations who eye an under-served market.


pages: 138 words: 43,748

Conscience of a Conservative: A Rejection of Destructive Politics and a Return to Principle by Jeff Flake

4chan, Affordable Care Act / Obamacare, battle of ideas, Berlin Wall, cognitive dissonance, crony capitalism, David Brooks, Donald Trump, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global supply chain, immigration reform, impulse control, invisible hand, Mark Zuckerberg, obamacare, Potemkin village, race to the bottom, road to serfdom, Ronald Reagan, Silicon Valley, uranium enrichment, zero-sum game

The solution to our problems was to erect physical barriers between us and the world as well as metaphorical barriers between Americans, as populists will do. Our multilateral trade deals were suddenly the worst deals in the history of mankind, and other countries were benefiting and we had been left holding the bag—when in truth, all of the countries engaged in trade were doing better. Efficient and truly global supply chains mean that the component parts of an “American” car sometimes cross four or five borders—or our own borders four or five times—before that car rolls off the assembly line. Specialization, modernization, and mechanization mean a better standard of living for everyone and make for a more peaceful world as well. It wasn’t clear if Donald Trump didn’t believe any of this, or if he just hadn’t thought very much about it.


pages: 385 words: 123,168

Bullshit Jobs: A Theory by David Graeber

1960s counterculture, active measures, basic income, Berlin Wall, Bernie Sanders, Bertrand Russell: In Praise of Idleness, Bretton Woods, Buckminster Fuller, call centre, cognitive dissonance, collateralized debt obligation, David Graeber, Donald Trump, equal pay for equal work, full employment, global supply chain, High speed trading, hiring and firing, informal economy, Jarndyce and Jarndyce, Jarndyce and Jarndyce, job automation, John Maynard Keynes: technological unemployment, knowledge worker, moral panic, post-work, precariat, Silicon Valley, Silicon Valley startup, single-payer health, software as a service, telemarketer, The Future of Employment, Thorstein Veblen, too big to fail, Travis Kalanick, universal basic income, unpaid internship, wage slave, wages for housework, women in the workforce, working poor, Works Progress Administration, young professional, éminence grise

And whatever it was, how is it connected to the rise of the total proportion of managers, administrators, and meaningless paper pushers outside the academy that occurred during the same period of time? Since this is the period that also saw the rise of finance capitalism, it might be best to return to the FIRE sector (finance, insurance, real estate) to seek insight into what overall dynamic in the economy sparked such changes. If those whom the Economist believes to be administering complex global supply chains are not, in fact, administering complex global supply chains, then what exactly are they doing? And does what is happening in those offices provide any sort of window on what is happening elsewhere? why the financial industry might be considered a paradigm for bullshit job creation • expedited frictionless convergences • coordinated interactive market institutions • contracted virtual clearinghouses • directed margin adjustments 21 On a superficial level, of course, the immediate mechanisms that create bullshit jobs in the FIRE sector are the same ones that produce them anywhere else.


World Cities and Nation States by Greg Clark, Tim Moonen

active transport: walking or cycling, Asian financial crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, business climate, cleantech, congestion charging, corporate governance, deindustrialization, Deng Xiaoping, financial independence, financial intermediation, Francis Fukuyama: the end of history, full employment, global supply chain, global value chain, high net worth, housing crisis, immigration reform, income inequality, informal economy, Kickstarter, knowledge economy, low skilled workers, megacity, new economy, New Urbanism, Norman Mailer, open economy, Pearl River Delta, rent control, Richard Florida, Silicon Valley, smart cities, sovereign wealth fund, special economic zone, stem cell, supply-chain management, The Wealth of Nations by Adam Smith, trade route, transaction costs, transit-oriented development, upwardly mobile, urban planning, urban renewal, urban sprawl, War on Poverty, zero-sum game

The lifting of the moratorium on foreign banks in 1978 and the opening of the Shenzhen Special Economic Zone in 1980 effectively triggered a new phase in Hong Kong’s evolution. The city’s industrial base relocated to the neighbouring PRD region for cost reasons. The new access to a large workforce in growing cities such as Shenzhen and Guangzhou meant that Hong Kong was able to manage and finance a huge number of manufacturing joint ventures. Hong Kong capital flooded into the regional subcontracting market that became essential to global supply chains of consumer goods. Hong Kong benefited greatly from growth on the mainland, which resulted in many newly listed mainland companies listing on the HKSE, a huge rise in Chinese tourism, a very large deposit base of RMB and a soaring domestic export market (Fung, 2008, 2011). It is no exaggeration to say that Hong Kong played a decisive role in the ­transformation of the Chinese economy. Its manufacturing and import/export firms began to employ tens of millions of workers on the Chinese mainland (mainly Guangdong), and became responsible for intermediating the lion’s share of China’s external trade and foreign direct investment by 2000.

The evidence from across the countries surveyed in this book, and others, indicates that public trust and confidence in the evolving urban dynamics set in train by globalisation can be improved with the help of a robust national urban policy. National frameworks that outline an inclusive vision of urbanisation and create predictability around long‐term public infrastructure priorities and funding streams appear to offer benefits for both world cities and other cities. This kind of multi‐cycle approach allows cities to understand how they should compete in global supply chains and complement the most globally oriented cities. Even in federal systems, the national tier still has responsibility to co‐ ordinate with state and local partners to create lasting policy and identify viable funding mechanisms. Taking a longer view, the kind of tensions and disparities that are emerging between world cities and the other cities and rural areas in the nation state are 238 World Cities and Nation States only just beginning.


pages: 464 words: 127,283

Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia by Anthony M. Townsend

1960s counterculture, 4chan, A Pattern Language, Airbnb, Amazon Web Services, anti-communist, Apple II, Bay Area Rapid Transit, Burning Man, business process, call centre, carbon footprint, charter city, chief data officer, clean water, cleantech, cloud computing, computer age, congestion charging, connected car, crack epidemic, crowdsourcing, DARPA: Urban Challenge, data acquisition, Deng Xiaoping, digital map, Donald Davies, East Village, Edward Glaeser, game design, garden city movement, Geoffrey West, Santa Fe Institute, George Gilder, ghettoisation, global supply chain, Grace Hopper, Haight Ashbury, Hedy Lamarr / George Antheil, hive mind, Howard Rheingold, interchangeable parts, Internet Archive, Internet of things, Jacquard loom, Jane Jacobs, jitney, John Snow's cholera map, Joi Ito, Khan Academy, Kibera, Kickstarter, knowledge worker, load shedding, M-Pesa, Mark Zuckerberg, megacity, mobile money, mutually assured destruction, new economy, New Urbanism, Norbert Wiener, Occupy movement, off grid, openstreetmap, packet switching, Panopticon Jeremy Bentham, Parag Khanna, patent troll, Pearl River Delta, place-making, planetary scale, popular electronics, RFC: Request For Comment, RFID, ride hailing / ride sharing, Robert Gordon, self-driving car, sharing economy, Silicon Valley, Skype, smart cities, smart grid, smart meter, social graph, social software, social web, special economic zone, Steve Jobs, Steve Wozniak, Stuxnet, supply-chain management, technoutopianism, Ted Kaczynski, telepresence, The Death and Life of Great American Cities, too big to fail, trade route, Tyler Cowen: Great Stagnation, undersea cable, Upton Sinclair, uranium enrichment, urban decay, urban planning, urban renewal, Vannevar Bush, working poor, working-age population, X Prize, Y2K, zero day, Zipcar

Technology could fix all that, they argued, by stretching existing resources to deal with the first two problems and ratcheting down the excesses of industrial growth to deal with the third. If we replicated the logistics systems of global business and applied them to the very local problems of cities, it seemed, all would be well. As Colin Harrison, one of the architects of IBM’s smart-cities strategy explained it, “For much of the last twenty years, we instrumented the global supply chain. That hasn’t happened in city governments.”32 Remodeling cities in the image of multinational corporations requires three new layers of technology according to Arup, a global engineering giant. The first layer is “instrumentation”—the sensor grids embedded in infrastructure that measure conditions throughout the city, much as companies use GPS trackers, bar codes, and cash-register receipts to measure what is going on in their businesses.

His bio lauded many achievements, including leading the development of the first commercially useful MRI system in 1978, but also his “many failed innovations,” including an intriguing one named “magnetic bubble memories.”25 For Harrison, the weaving of SABRE-like information systems into everything was an inevitable historical process. “Over the last two decades,” he explained in 2011 at a conference in New York, “the planet became wired for transactions. The global supply chains that existed for centuries suddenly became instrumented,” fitted out with sensors that could track the movement of people, goods, and money. Manufacturers could track operations and sales worldwide, in real time. Suddenly, suppliers could tap into their customers’ mainframes to update delivery schedules. Consumers increasingly got glimpses of this new commercial apparatus, like the package-tracking services provided by carriers such as UPS and FedEx.


pages: 459 words: 138,689

Slowdown: The End of the Great Acceleration―and Why It’s Good for the Planet, the Economy, and Our Lives by Danny Dorling, Kirsten McClure

Affordable Care Act / Obamacare, Berlin Wall, Bernie Sanders, Boris Johnson, British Empire, business cycle, capital controls, clean water, creative destruction, credit crunch, Donald Trump, drone strike, Elon Musk, en.wikipedia.org, Flynn Effect, full employment, future of work, gender pay gap, global supply chain, Google Glasses, Henri Poincaré, illegal immigration, immigration reform, income inequality, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, James Dyson, jimmy wales, John Harrison: Longitude, Kickstarter, low earth orbit, Mark Zuckerberg, market clearing, Martin Wolf, mass immigration, means of production, megacity, meta analysis, meta-analysis, mortgage debt, nuclear winter, pattern recognition, Ponzi scheme, price stability, profit maximization, purchasing power parity, QWERTY keyboard, random walk, rent control, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Scramble for Africa, sexual politics, Skype, Stephen Hawking, Steven Pinker, structural adjustment programs, the built environment, Tim Cook: Apple, transatlantic slave trade, trickle-down economics, very high income, wealth creators, wikimedia commons, working poor

Bruce Masse (London: Geological Society, Special Publications, 2007), 273, 271–78, http://sp.lyellcollection.org/content/specpubgsl/273/1/271.full.pdf. 10. Jason Hickel, The Divide: A New History of Global Inequality (London: William Heinemann, 2017), 275, 285. 11. Walmart, “Walmart on Track to Reduce 1 Billion Metric Tons of Emissions from Global Supply Chains by 2030,” 8 May 2019, https://corporate.walmart.com/newsroom/2019/05/08/walmart-on-track-to-reduce-1-billion-metric-tons-of-emissions-from-global-supply-chains-by-2030. 12. Mary Schlangenstein, “Airline Shares Reach Record as Buffett’s Berkshire Extends Bet,” Bloomberg News, 15 February 2017, https://www.bloomberg.com/news/articles/2017-02-15/airlines-rise-to-a-record-as-buffett-s-berkshire-deepens-bet. 13. The oil prices used in figure 17 were sourced from Crude Oil Prices—70 Year Historical Chart, accessed 10 March 2019, https://www.macrotrends.net/1369/crude-oil-price-history-chart. 14.


Design of Business: Why Design Thinking Is the Next Competitive Advantage by Roger L. Martin

asset allocation, Buckminster Fuller, business process, Frank Gehry, global supply chain, high net worth, Innovator's Dilemma, Isaac Newton, mobile money, QWERTY keyboard, Ralph Waldo Emerson, risk tolerance, six sigma, Steve Ballmer, Steve Jobs, supply-chain management, Wall-E, winner-take-all economy

Interestingly, RIM’s other competitors have had less success in the move to smart phones. “Apple realized the same thing we knew about Nokia and Motorola and all the others, which is that they were too successful and focused on feature phones (without e-mail and Web capability). They weren’t betting on the future,” says Lazaridis. “They were betting on their engine—their low-cost, high-volume, global supply chain juggernaut. They were missing the point. There will be no feature phones in the future. It will all be smart phones.” Long before the iPhone was even a rumor, Lazaridis was back to work creating the 3G Bold with a dramatically enhanced screen and the media-handling capabilities of an iPod. Next came the touch-screen Storm. Lazaridis recognized that a set of his customers wanted a touch-screen device, but felt that existing touchscreen technology lacked an essential element of the BlackBerry experience—the ability to separate navigation (scrolling to the desired message) from confirmation (opening the message).


pages: 1,072 words: 237,186

How to Survive a Pandemic by Michael Greger, M.D., FACLM

coronavirus, COVID-19, Covid-19, double helix, friendly fire, global pandemic, global supply chain, global village, inventory management, Kickstarter, mass immigration, megacity, meta analysis, meta-analysis, New Journalism, out of africa, Peace of Westphalia, phenotype, profit motive, RAND corporation, randomized controlled trial, Ronald Reagan, Saturday Night Live, statistical model, stem cell, supply-chain management, the medium is the message, Westphalian system, Y2K, Yogi Berra

“We will have very little of it, and it will get here too late.”660 Bitter Pill Antibiotics may be even less help. We live in a global, just-in-time economy, which allows manufacturers worldwide to streamline their production to precisely meet demand, thereby reducing inventory warehousing costs and waste. The problem is that a single glitch in the supply chain can almost instantly dry up supply. During a crisis in which we shut down our borders, globalized supply chains will be shattered and vital goods like pharmaceuticals in general will be in short supply or unavailable.661 Antibiotics only work against bacteria. Although they can be effective in treating secondary bacterial infections, they are useless against viral pneumonia. Antibiotics were useful during the 1957 and 1968 pandemics because these were essentially just bad flu seasons when more people than expected came down with the flu due to the novelty of the bird/human hybrid viruses.

There are fewer than a hundred thousand full-feature ventilators in all of America’s hospitals,691 and most are already in use at any given time for everyday medical care year round.692 Experts like Irwin Redlener, then director of Columbia University’s National Center for Disaster Preparedness, saw the ventilator shortage as being emblematic of the country’s overall lack of preparedness. “This is a life-or-death issue, and it reflects everything else that’s wrong about our pandemic planning,” Redlener said.693 Within days of a pandemic, ventilators will be just one of many pieces of medical equipment that would be in short supply with the collapse of global supply chains. “Throughout the crisis,” Osterholm wrote in the public policy journal Foreign Affairs, “many of these necessities would simply be unavailable for most health-care institutions.”694 With COVID-19, we’re seeing a desperate lack of even basic protective gear for health-care workers, such as masks and gowns. Redlener described insufficient hospital capacity as our “biggest weak link.”695 Unlike most other health-care systems in the world, health care in the United States is largely profit driven.

The AMA duty-to-care clause has since been removed.712 According to the journal of the American Bar Association, though, thirty-two state governments have considered legislation that would effectively force health-care workers to show up for work in a medical crisis by threatening to yank their licensure.713 Population Bust A Category 5 pandemic today could be many times worse than the pandemic of 1918, the world’s greatest medical catastrophe. In 1918 we were, as a nation and as a people, much more self-sufficient.714 Now, with the corporate triumph of free trade, just-in-time inventory management and global supply chains characterize all major economies and business sectors.715 Economic analysts predict a pandemic would cause a global economic collapse unprecedented in modern history.716 With the world’s population at an historical high, this could lead to unprecedented human suffering, something the global community is getting a taste of due to the COVID-19 pandemic. A short one hundred thousand years ago, all members of the human race lived in eastern Africa.717 The 7.8 billion people alive today represent roughly one out of every fourteen people who have ever inhabited the Earth.718 In 1918, cities like London were smaller, with just over one million residents.


pages: 565 words: 151,129

The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism by Jeremy Rifkin

"Robert Solow", 3D printing, active measures, additive manufacturing, Airbnb, autonomous vehicles, back-to-the-land, big-box store, bioinformatics, bitcoin, business process, Chris Urmson, clean water, cleantech, cloud computing, collaborative consumption, collaborative economy, Community Supported Agriculture, Computer Numeric Control, computer vision, crowdsourcing, demographic transition, distributed generation, en.wikipedia.org, Frederick Winslow Taylor, global supply chain, global village, Hacker Ethic, industrial robot, informal economy, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invisible hand, Isaac Newton, James Watt: steam engine, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Julian Assange, Kickstarter, knowledge worker, longitudinal study, Mahatma Gandhi, manufacturing employment, Mark Zuckerberg, market design, mass immigration, means of production, meta analysis, meta-analysis, natural language processing, new economy, New Urbanism, nuclear winter, Occupy movement, off grid, oil shale / tar sands, pattern recognition, peer-to-peer, peer-to-peer lending, personalized medicine, phenotype, planetary scale, price discrimination, profit motive, QR code, RAND corporation, randomized controlled trial, Ray Kurzweil, RFID, Richard Stallman, risk/return, Ronald Coase, search inside the book, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, smart grid, smart meter, social web, software as a service, spectrum auction, Steve Jobs, Stewart Brand, the built environment, The Nature of the Firm, The Structural Transformation of the Public Sphere, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, too big to fail, transaction costs, urban planning, Watson beat the top human players on Jeopardy!, web application, Whole Earth Catalog, Whole Earth Review, WikiLeaks, working poor, zero-sum game, Zipcar

The labs are outfitted with various types of flexible manufacturing equipment, which includes laser cutters, routers, 3D printers, mini mills, and the accompanying open-source software. Setting up the fully equipped lab costs around $50,000.10 There are now over 70 Fab Labs, most in urban areas in highly industrialized countries, but many, surprisingly enough, are in developing countries where access to the fabricating tools and equipment creates a beachhead for establishing a 3D printing community.11 In remote areas of the world, unconnected to the global supply chain, being able to fabricate even simple tools and objects can greatly improve economic welfare. The great majority of Fab Labs are community-led projects managed by universities and nonprofit associations, although a few commercial retailers are beginning to explore the idea of attaching Fab Labs to their stores—so that a hobbyist can buy the supplies he or she needs and then use the Fab Lab to create the product.12 The idea, says Gershenfeld, is to provide the tools and materials anyone would need to build whatever they can envision.

Ashlee Vance, “3-D Printers: Make Whatever You Want,” Bloomberg Businessweek, April 26, 2012, http://www.businessweek.com/articles/2012-04-26/3d-printers-make-whatever-you-want (accessed August 23, 2013). 3. “Wohlers Associates Publishes 2012 Report on Additive Manufacturing and 3-D Printing: Industry Study Shows Annual Growth of Nearly 30%,” Wohlers Associates, May 15, 2012, http://wohlersassociates.com/press56.htm (accessed August 16, 2013). 4. Richardson and Haylock, “Designer/Maker.” 5. Irene Chapple, “Dickerson: Etsy Is Disrupting Global Supply Chains,” CNN, June 5, 2013, http://edition.cnn.com/2013/06/05/business/etsy-leweb-craft-disrupting (accessed June 28, 2013). 6. “A Brief History of 3D Printing,” T. Rowe Price, December 2011, http://individual.troweprice .com/staticFiles/Retail/Shared/PDFs/3-D_Printing_Infographic_FINAL.pdf (accessed November 2, 2013). 7. “Definition: Hacker,” Search Security, October 2006, http://searchsecurity.techtarget.com /definition/hacker (accessed October 15, 2013). 8.


pages: 538 words: 145,243

Behemoth: A History of the Factory and the Making of the Modern World by Joshua B. Freeman

anti-communist, British Empire, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, Corn Laws, corporate raider, deindustrialization, Deng Xiaoping, disruptive innovation, en.wikipedia.org, factory automation, Ford paid five dollars a day, Frederick Winslow Taylor, global supply chain, indoor plumbing, interchangeable parts, invisible hand, James Hargreaves, joint-stock company, knowledge worker, mass immigration, means of production, mittelstand, Naomi Klein, new economy, On the Economy of Machinery and Manufactures, Panopticon Jeremy Bentham, Pearl River Delta, post-industrial society, Ralph Waldo Emerson, rising living standards, Ronald Reagan, Silicon Valley, special economic zone, spinning jenny, Steve Jobs, strikebreaker, technoutopianism, the built environment, The Wealth of Nations by Adam Smith, Thorstein Veblen, Tim Cook: Apple, transaction costs, union organizing, Upton Sinclair, urban planning, Vanguard fund, women in the workforce, working poor, Works Progress Administration, zero-sum game

The answer seems to lie in economies of scale and competitive advantages, not for manufacturers, but for the retailers that sell the products they make. This reflects a fundamental shift in relations between the two parties. Until fairly recently, the design, manufacture, and marketing of consumer products generally occurred within the confines of one company. But since the 1970s they have been delinked. And, as sociologist Richard P. Appelbaum has argued, in contemporary global supply chains it is retailers and branders (designers and marketers that depend on others for manufacturing) who have the most power to establish the arrangements and terms of production, not factory owners. Factory giantism serves their interests.33 Early in the history of factory production, some of the most successful manufacturers established their dominance by selling their products under brand names and controlling distribution networks.

., China on Strike: Narratives of Workers’ Resistance, English edition edited by Zhongjin Li and Eli Friedman (Chicago: Haymarket Books, 2016), 11, 201–03; Jennifer Baichwal, Manufactured Landscapes (Foundry Films and National Film Board of Canada, 2006). 8.David Barboza, “In Roaring China, Sweaters Are West of Socks City,” New York Times, Dec. 24, 2004; Ngai, Migrant Labor, 102. 9.New York Times, Nov. 8, 1997, Mar. 28, 2000; Nelson Lichtenstein, The Retail Revolution: How Wal-Mart Created a Brave New World of Business (New York: Metropolitan Books, 2009), 173; Richard P. Appelbaum, “Giant Transnational Contractors in East Asia: Emergent Trends in Global Supply Chains,” Competition & Change 12 (Mar. 2008), 74; “About PCG,” http://www.pouchen.com/index.php/en/about/locations, and “Yue Yuen Announces Audited Results for the Year 2015,” http://www.yueyuen.com/index.php/en/news-pr/1147-2016-03-23-yue-yuen-announces-audited-results-for-the-year-2015 (both accessed June 3, 2016); International Trade Union Confederation, 2012 Annual Survey of Violations of Trade Union Rights—Vietnam, June 6, 2012, http://www.refworld.org/docid/4fd889193.html. 10.Some ten thousand Soviet technicians were posted to China to help with the industrialization drive, while nearly three times that many Chinese went to the Soviet Union for training.


pages: 223 words: 58,732

The Retreat of Western Liberalism by Edward Luce

"Robert Solow", 3D printing, affirmative action, Airbnb, basic income, Berlin Wall, Bernie Sanders, Boris Johnson, Branko Milanovic, Bretton Woods, business cycle, call centre, carried interest, centre right, Charles Lindbergh, cognitive dissonance, colonial exploitation, colonial rule, computer age, corporate raider, cuban missile crisis, currency manipulation / currency intervention, Dissolution of the Soviet Union, Doha Development Round, Donald Trump, double entry bookkeeping, Erik Brynjolfsson, European colonialism, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, future of work, George Santayana, gig economy, Gini coefficient, global pandemic, global supply chain, illegal immigration, imperial preference, income inequality, informal economy, Internet of things, Jaron Lanier, knowledge economy, lateral thinking, liberal capitalism, Marc Andreessen, Mark Zuckerberg, Martin Wolf, mass immigration, means of production, Monroe Doctrine, moral panic, more computing power than Apollo, mutually assured destruction, new economy, New Urbanism, Norman Mailer, offshore financial centre, one-China policy, Peace of Westphalia, Peter Thiel, plutocrats, Plutocrats, precariat, purchasing power parity, reserve currency, reshoring, Richard Florida, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, Snapchat, software is eating the world, South China Sea, Steve Jobs, superstar cities, telepresence, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, Washington Consensus, We are the 99%, We wanted flying cars, instead we got 140 characters, white flight, World Values Survey, Yogi Berra

This was enabled by the relentless drop in the cost of transport. What steam did in the nineteenth century, aeroplanes, supertankers and mechanised ports did for the last third of the twentieth century. The explosion of communications technology in the twenty-first century is enabling Western companies to do precisely the same in the knowledge economy today. Companies’ ability to go offshore via diversified global supply chains is no longer confined to physical goods. In the short term it is not artificial intelligence the West should worry about. It is what Baldwin calls remote intelligence. In some respects it has already arrived. Over the last twenty years, India and the Philippines reaped the rewards of the telecoms revolution to create lower-skilled service sector jobs at call centres, and on technology helpdesks.


pages: 204 words: 58,565

Keeping Up With the Quants: Your Guide to Understanding and Using Analytics by Thomas H. Davenport, Jinho Kim

Black-Scholes formula, business intelligence, business process, call centre, computer age, correlation coefficient, correlation does not imply causation, Credit Default Swap, en.wikipedia.org, feminist movement, Florence Nightingale: pie chart, forensic accounting, global supply chain, Hans Rosling, hypertext link, invention of the telescope, inventory management, Jeff Bezos, Johannes Kepler, longitudinal study, margin call, Moneyball by Michael Lewis explains big data, Myron Scholes, Netflix Prize, p-value, performance metric, publish or perish, quantitative hedge fund, random walk, Renaissance Technologies, Robert Shiller, Robert Shiller, self-driving car, sentiment analysis, six sigma, Skype, statistical model, supply-chain management, text mining, the scientific method, Thomas Davenport

In organizations that somehow hired quantitative analysts but ignore them when important decisions come along, the nasty attitudes we’ve described often pop up. Quants, like most other people, respect others when they are respected. Analytical Thinking Example: Demand Forecasting at Cisco Forecasting customer demand is a problem for many firms, particularly in manufacturing.9 It is a particularly important issue for Cisco Systems, the market-leading provider of telecommunications equipment. The company has a very complex global supply chain, and doesn’t manufacture most of the products it sells. As Kevin Harrington, vice president of global business operations in Cisco’s Customer Value Chain Management organization put it: “Forecasting customer demand is, of course, a central part of supply chain management and a critical enabler of lean manufacturing. This discipline becomes ever more challenging in times like our own characterized by rapid changes in the macro-economy and volatile swings in supply and demand.


pages: 254 words: 61,387

This Could Be Our Future: A Manifesto for a More Generous World by Yancey Strickler

basic income, big-box store, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, cognitive dissonance, corporate governance, Daniel Kahneman / Amos Tversky, David Graeber, Donald Trump, Doomsday Clock, effective altruism, Elon Musk, financial independence, gender pay gap, global supply chain, housing crisis, Ignaz Semmelweis: hand washing, invention of the printing press, invisible hand, Jeff Bezos, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Nash: game theory, Joi Ito, Joseph Schumpeter, Kickstarter, Louis Pasteur, Mark Zuckerberg, medical bankruptcy, new economy, Oculus Rift, off grid, offshore financial centre, Ralph Nader, RAND corporation, Richard Thaler, Ronald Reagan, self-driving car, shareholder value, Silicon Valley, Simon Kuznets, Snapchat, Social Responsibility of Business Is to Increase Its Profits, stem cell, Steve Jobs, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Travis Kalanick, universal basic income, white flight

In single-stream recycling, between 15 and 27 percent of the material does, because it’s too dirty or isn’t recyclable. This matters. As an industry report notes: “Collection is not recycling. A product is not recycled until it is made into another product.” Since modern recycling began, China has bought most of America’s recyclables. Millions of tons of it were shipped across the Pacific and reintegrated into the global supply chain. American cities and waste facilities sold recycling by the cargo load to China at a profit. Everybody won. But those days appear to be over thanks to the messiness of America’s single-stream recycling. In 2018, China raised its standards for the recycling it would buy. According to the new rules, only 0.5 percent of it can end up in landfill. The previous year around 20 percent of the material the United States sent to China was discarded.


pages: 234 words: 63,149

Every Nation for Itself: Winners and Losers in a G-Zero World by Ian Bremmer

airport security, banking crisis, barriers to entry, Berlin Wall, blood diamonds, Bretton Woods, BRICs, capital controls, clean water, creative destruction, Deng Xiaoping, Doha Development Round, energy security, European colonialism, failed state, global rebalancing, global supply chain, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Julian Assange, Kickstarter, Martin Wolf, mass immigration, Mikhail Gorbachev, mutually assured destruction, Nelson Mandela, Nixon shock, nuclear winter, Parag Khanna, purchasing power parity, reserve currency, Ronald Reagan, smart grid, South China Sea, sovereign wealth fund, special economic zone, Stuxnet, trade route, uranium enrichment, Washington Consensus, WikiLeaks, Yom Kippur War

In fact, Putin’s 2012 election bid has triggered angry demonstrations that took the media (and Putin) by surprise. Strife within so many important countries could inflict considerable damage on the global economy, with dire consequences for volatile and vulnerable states like Pakistan, which relies on Saudi, U.S., and Chinese help to keep its government afloat. Globalization faces a fundamental setback as global supply chains become unmanageable and a lot more borders appear within states. Local actors refuse to respect agreements signed at the national level that exploit their resources. In some cases, they seize assets and property owned by the state (pipelines, reservoirs, ports) or by companies based beyond their borders. This issue could also allow local political opportunists to exploit divisions of various kinds within states like Iraq, Syria, and the former Soviet republics of the Caucasus and Central Asia—states whose borders were established by outsiders ignorant of older ethnic, sectarian, and tribal boundaries or willing to ignore them for reasons of their own.


pages: 252 words: 70,424

The Self-Made Billionaire Effect: How Extreme Producers Create Massive Value by John Sviokla, Mitch Cohen

business cycle, Cass Sunstein, Colonization of Mars, corporate raider, Daniel Kahneman / Amos Tversky, Elon Musk, Frederick Winslow Taylor, game design, global supply chain, James Dyson, Jeff Bezos, John Harrison: Longitude, Jony Ive, loss aversion, Mark Zuckerberg, market design, old-boy network, paper trading, RAND corporation, randomized controlled trial, Richard Thaler, risk tolerance, self-driving car, Silicon Valley, smart meter, Steve Ballmer, Steve Jobs, Steve Wozniak, Tony Hsieh, Toyota Production System, young professional

This is clearly a big issue for Target and other retailers struggling to protect their reputations, but it is most often addressed by looking at the best practices of best-in-class retailers or financial companies to understand how they prevent security breaches. Natural Producers would look at the problem at a higher level, namely, how does the structure of the global credit card system compromise security and is there a global change that could improve it? In the same way that Walmart is influencing the environmental footprint of its global supply chain, could Target change the security footprint of retail payments? In this way, companies shift their organizational focus from day-to-day minutiae to the larger purpose of what the organization is about and what foundational solutions it can offer. Questions at this level of scale are rarely posed at all, much less at all levels in corporate environments—another example of the ways that many large businesses constrain the collective imaginations of their employees.


pages: 204 words: 66,619

Think Like an Engineer: Use Systematic Thinking to Solve Everyday Challenges & Unlock the Inherent Values in Them by Mushtak Al-Atabi

3D printing, agricultural Revolution, Albert Einstein, Barry Marshall: ulcers, Black Swan, business climate, call centre, Clayton Christensen, clean water, cognitive bias, corporate social responsibility, dematerialisation, disruptive innovation, Elon Musk, follow your passion, global supply chain, happiness index / gross national happiness, invention of the wheel, iterative process, James Dyson, Kickstarter, knowledge economy, Lao Tzu, Lean Startup, On the Revolutions of the Heavenly Spheres, remote working, shareholder value, six sigma, Steve Jobs, Steven Pinker

Mushtak Al-Atabi has captured the essence of engineering and made engineers more human by linking the brain and emotional intelligence. This well-written book provides coverage of a number of important issues and techniques not commonly covered in most introductory engineering textbooks. It would benefit both engineers and non-engineers to read it as it may help them solve problems or develop opportunities in the real world.” Mastura Mansor, Vice President-Global Supply Chain, Scomi “The challenges of the 21st century will require a whole new kind of engineer: engineers who can both design complex technical systems and appreciate their interaction with society; engineers who possess both analytical intelligence and emotional intelligence; engineers who can work with others, take risks, and learn from failure. Al-Atabi’s text provides engineering students with a thoughtful roadmap to grow and develop as this kind of engineer; students and faculty alike will benefit from his insights.”


pages: 233 words: 64,702

China's Disruptors: How Alibaba, Xiaomi, Tencent, and Other Companies Are Changing the Rules of Business by Edward Tse

3D printing, Airbnb, Airbus A320, Asian financial crisis, barriers to entry, bilateral investment treaty, business process, capital controls, commoditize, conceptual framework, corporate governance, creative destruction, crowdsourcing, currency manipulation / currency intervention, David Graeber, Deng Xiaoping, disruptive innovation, experimental economics, global supply chain, global value chain, high net worth, industrial robot, Joseph Schumpeter, Lyft, money market fund, offshore financial centre, Pearl River Delta, reshoring, rising living standards, risk tolerance, Silicon Valley, Skype, Snapchat, sovereign wealth fund, special economic zone, speech recognition, Steve Jobs, thinkpad, trade route, wealth creators, working-age population

Born in Yichang, a city on the Yangtze in central China, after graduating from Wuhan University in 1983 he moved to the United States, where he became a business-school professor at the University of Texas. Yu went on to launch an airlines-related computer systems business that he eventually sold to Andersen Consulting (the forerunner of Accenture) and worked as a multinational executive running Amazon’s and Dell’s global supply chains. His job at Dell took him back to China, with a post in Shanghai managing the company’s $18 billion procurement budget. For most people, that would have been challenge enough. But Yu found himself caught up in the tide of entrepreneurial fever that was sweeping the country. The idea for Yihaodian emerged from a business lunch with fellow Dell executive—and current Yihaodian CEO—Liu Junling.


pages: 391 words: 71,600

Hit Refresh: The Quest to Rediscover Microsoft's Soul and Imagine a Better Future for Everyone by Satya Nadella, Greg Shaw, Jill Tracie Nichols

"Robert Solow", 3D printing, Amazon Web Services, anti-globalists, artificial general intelligence, augmented reality, autonomous vehicles, basic income, Bretton Woods, business process, cashless society, charter city, cloud computing, complexity theory, computer age, computer vision, corporate social responsibility, crowdsourcing, Deng Xiaoping, Donald Trump, Douglas Engelbart, Edward Snowden, Elon Musk, en.wikipedia.org, equal pay for equal work, everywhere but in the productivity statistics, fault tolerance, Gini coefficient, global supply chain, Google Glasses, Grace Hopper, industrial robot, Internet of things, Jeff Bezos, job automation, John Markoff, John von Neumann, knowledge worker, Mars Rover, Minecraft, Mother of all demos, NP-complete, Oculus Rift, pattern recognition, place-making, Richard Feynman, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, side project, Silicon Valley, Skype, Snapchat, special economic zone, speech recognition, Stephen Hawking, Steve Ballmer, Steve Jobs, telepresence, telerobotics, The Rise and Fall of American Growth, Tim Cook: Apple, trade liberalization, two-sided market, universal basic income, Wall-E, Watson beat the top human players on Jeopardy!, young professional, zero-sum game

This means every region—in both developed and developing countries—must grow industries in which they have comparative economic advantage with use of new technology inputs. Business leaders and policymakers need to ask: What do we have that others do not have? And how can we turn that unique advantage into a source of growth and wealth for all our people? China has clearly done this with proactive industrial policy that supports their entrepreneurs and economy across manufacturing and consumer Internet services. China strategically used the global supply chain and their own domestic market to amplify their comparative advantage and bootstrap their economic growth. The combination of industrial policy, public sector investment, and entrepreneurial energy is what many other countries will also look to replicate from China’s success. I see the beginnings of this in India with the creation of the new digital ecosystem known as IndiaStack. India is leapfrogging from once being an infrastructure-poor country to now leading in digital technology.


pages: 281 words: 69,107

Belt and Road: A Chinese World Order by Bruno Maçães

active measures, Admiral Zheng, autonomous vehicles, Branko Milanovic, BRICs, cloud computing, deindustrialization, demographic dividend, Deng Xiaoping, different worldview, Donald Trump, energy security, European colonialism, eurozone crisis, Francis Fukuyama: the end of history, global supply chain, global value chain, industrial cluster, industrial robot, Internet of things, Kenneth Rogoff, land reform, liberal world order, Malacca Straits, one-China policy, Pearl River Delta, smart cities, South China Sea, sovereign wealth fund, special economic zone, trade liberalization, trade route, zero-sum game

The global economy is less a level playing field than an organized system in which some countries occupy privileged positions and others, such as China, try to rise to these commanding heights. It was always like that, as you will be told in Beijing. The difference is that now someone else is inching closer to the center. The Belt and Road is the name for a global order infused with Chinese political principles and placing China at its heart. In economic terms this means that China will be organizing and leading an increasing share of global supply chains, reserving for itself the most valuable segments of production and creating strong links of collaboration and infrastructure with other countries, whose main role in the system will be to occupy lower value segments. Politically, Beijing hopes to put in place the same kind of feedback mechanism that the West has benefited from: deeper links of investment, infrastructure and trade can be used as leverage to shape relations with other countries even more in its favor.


pages: 232 words: 63,803

Billion Dollar Burger: Inside Big Tech's Race for the Future of Food by Chase Purdy

agricultural Revolution, cognitive dissonance, corporate governance, Donald Trump, gig economy, global supply chain, Intergovernmental Panel on Climate Change (IPCC), Jeff Bezos, Peter Thiel, Silicon Valley, Silicon Valley startup, sovereign wealth fund, stealth mode startup, stem cell, Steve Jobs

Lisa Feria, the president of Stray Dog Capital, created the syndicate. Feria started her career at General Mills, literally making brownies and Cheerios, brands that sell in virtually every US supermarket. Then she went to the Procter & Gamble Company, where she worked in consumer goods. This was also about the time she became vegan. She operates her investing from the perspective that animals need to be removed from global supply chains. Whether that means growing leather from cells, funding start-ups that create non-animal-based gelatin, or pumping money into a cell-cultured meat start-up, Feria knows that interest from investors will be crucial if these start-ups ever want a shot at challenging the multibillion-dollar status quo. “My level of contribution to these companies comes from three areas: capital when they need it to grow, access to our networks and contacts, and really just trying to figure out areas of consecutiveness between other companies,” she says, noting that she typically invests when start-ups are in their earliest stages.


pages: 777 words: 186,993

Imagining India by Nandan Nilekani

addicted to oil, affirmative action, Airbus A320, BRICs, British Empire, business process, business process outsourcing, call centre, clean water, colonial rule, corporate governance, cuban missile crisis, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, digital map, distributed generation, farmers can use mobile phones to check market prices, full employment, ghettoisation, glass ceiling, global supply chain, Hernando de Soto, income inequality, informal economy, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, knowledge economy, land reform, light touch regulation, LNG terminal, load shedding, low cost airline, Mahatma Gandhi, market fragmentation, mass immigration, Mikhail Gorbachev, Network effects, new economy, New Urbanism, open economy, Parag Khanna, pension reform, Potemkin village, price mechanism, race to the bottom, rent control, rolodex, Ronald Reagan, school vouchers, Silicon Valley, smart grid, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, trickle-down economics, unemployed young men, upwardly mobile, urban planning, urban renewal, women in the workforce, working poor, working-age population

The rise of the market economy has also been instrumental in driving a demand for better education, access to IT and better infrastructure across economic classes to take advantage of economic growth. Abhijit Banerjee remarked to me how villagers have begun to oversee public road works in their areas. “Old men will sit by the side of the road, watching the contractors,” he says, “and if they mess up on the tarring and levelling, they make them fix it.” In the long term, world markets also have the power to improve governance standards. The integration across industry sectors with global supply chains has brought in international scrutiny and standards for local businesses, such as in food safety laws. It is also driving governments to respond to supply chain inefficiencies, which are bringing in reforms in agriculture, port and highway infrastructure, and a push toward less draconian controls in manufacturing. Across these sectors, openness is weeding out both government apathy and inefficiency.

And as businesses broaden their involvement into sectors such as education and health, it is providing an alternative to state systems. For instance, a villager without access to a good government school is able to access either a rural private school or education provided by a long-distance tutor through one of Sriram Raghavan’s IT kiosks. Group-based entitlements—in education, employment and infrastructure—are also becoming less difficult to sustain as the private sector expands and the country links itself with global supply chains in infrastructure and labor. Dr. Madhav Chavan, cofounder and director of the NGO Pratham, tells me, “Workers in Bombay are refusing to join unions on minimum wage, since they can negotiate directly with a company and get jobs at higher incomes.” This is creating broader support for markets and economic reforms and is also slowly bringing down the strength of interest groups such as teachers unions in schools and of unionized employees in the public sector.


pages: 183 words: 17,571

Broken Markets: A User's Guide to the Post-Finance Economy by Kevin Mellyn

banking crisis, banks create money, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, business cycle, buy and hold, call centre, Carmen Reinhart, central bank independence, centre right, cloud computing, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, crony capitalism, currency manipulation / currency intervention, disintermediation, eurozone crisis, fiat currency, financial innovation, financial repression, floating exchange rates, Fractional reserve banking, global reserve currency, global supply chain, Home mortgage interest deduction, index fund, information asymmetry, joint-stock company, Joseph Schumpeter, labor-force participation, light touch regulation, liquidity trap, London Interbank Offered Rate, market bubble, market clearing, Martin Wolf, means of production, mobile money, money market fund, moral hazard, mortgage debt, mortgage tax deduction, negative equity, Ponzi scheme, profit motive, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, rising living standards, Ronald Coase, seigniorage, shareholder value, Silicon Valley, statistical model, Steve Jobs, The Great Moderation, the payments system, Tobin tax, too big to fail, transaction costs, underbanked, Works Progress Administration, yield curve, Yogi Berra, zero-sum game

That would aid other developing markets that depend on low-cost labor to compete internationally, and it would raise the cost of Chinese goods to United States consumers considerably, so Americans would learn to do without their 72-inch TVs in many instances. That does not mean that the “jobs” supposedly “shipped” to China would return to high-cost, high-tax, and high-regulation localities in the United States.The development of global supply chains, “lean manufacturing,” and offshore production are responses to increased global competition and technologies that change factor costs while shrinking time and distance. Even doubling the value of the RMB in dollar terms would change none of that. On the other hand, removing Chinese savings and reserves from the global financial economy could be catastrophic. The same politicians who bang on about getting tough with China routinely vote for spending that depends on Chinese purchases of US Treasury debt.


pages: 232 words: 76,830

Dreams of Leaving and Remaining by James Meek

Affordable Care Act / Obamacare, agricultural Revolution, anti-communist, bank run, Boris Johnson, centre right, Corn Laws, corporate governance, Donald Trump, Elon Musk, Etonian, full employment, global supply chain, illegal immigration, Jeff Bezos, low skilled workers, Martin Wolf, mega-rich, Neil Kinnock, North Sea oil, Northern Rock, obamacare, offshore financial centre, race to the bottom, Ronald Reagan, savings glut, Skype, sovereign wealth fund, special economic zone, Stephen Hawking, working-age population

The two new Mondelez factories in Skarbimierz, one for gum and one for chocolate, have roofed over seven and a half acres. The chocolate factory is a giant shed, a blank oblong with a series of slightly higher blank oblongs jutting out of it. Most new factories are monochrome but the Mondelez factory is two-tone – grey and another, darker grey. It is digital-neat, as if it hadn’t so much been built as computer-rendered onto the bright white snow. On either side are other industrial sheds, nodes in the global supply chain: a distribution centre for the Portuguese food company Jerónimo Martins, an air filter plant built by the Minneapolis firm Donaldson and a car-seat maker, Johnson Controls, based in Wisconsin. There’s a set of turnstiles in the fence around the factory but nobody stopped me going through. A sign promoted a kind of managerial cult called Integrated Lean 6 Sigma, designed to reduce defects on the production line.


pages: 491 words: 77,650

Humans as a Service: The Promise and Perils of Work in the Gig Economy by Jeremias Prassl

3D printing, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, Andrei Shleifer, autonomous vehicles, barriers to entry, call centre, cashless society, Clayton Christensen, collaborative consumption, collaborative economy, collective bargaining, creative destruction, crowdsourcing, disruptive innovation, Donald Trump, Erik Brynjolfsson, full employment, future of work, George Akerlof, gig economy, global supply chain, hiring and firing, income inequality, information asymmetry, invisible hand, Jeff Bezos, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kickstarter, low skilled workers, Lyft, Mahatma Gandhi, Mark Zuckerberg, market friction, means of production, moral hazard, Network effects, new economy, obamacare, pattern recognition, platform as a service, Productivity paradox, race to the bottom, regulatory arbitrage, remote working, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Rosa Parks, Second Machine Age, secular stagnation, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley ideology, Simon Singh, software as a service, Steve Jobs, TaskRabbit, The Future of Employment, The Market for Lemons, The Nature of the Firm, The Rise and Fall of American Growth, transaction costs, transportation-network company, Travis Kalanick, two tier labour market, two-sided market, Uber and Lyft, Uber for X, uber lyft, union organizing, working-age population

See Matthew Finkin, ‘Beclouded work, beclouded workers in historical per- spective’ (2016) 37(3) Comparative Labor Law & Policy Journal 603; Susan Kitchell, ‘Tonya, the Japanese wholesalers: why their domination position’ (1995) 15(1) Journal of Macromarketing 21; J Lautner, Altbabylonische Personenmiete und Erntarbeiterverträge (1936) 164. 16. Select Committee on Homework, Reports of the Select Committee on Homework (HC 290-IV, 1907–8), xxv. The parallels are by no means limited to history: think, for example, of twentieth-century outsourcing and global supply chains. 17. Arun Sundararajan, The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism (MIT Press 2016), 159–75. * * * Notes 167 18. Consider, for example, this dizzying description of clothing manufacture: [T]he middleman fixes the garment, and passes it on to the tailor or ‘maker’ to baste for fitting; from this it passes to the ‘machiner’ to machine the main seams; again back to the fixer to fix the shoulder seams, collars and sleeves; back again to the tailor to put in the stitching; and a last to the whom to fell in the lining and stitch buttons and buttonholes.


pages: 290 words: 76,216

What's Wrong with Economics? by Robert Skidelsky

"Robert Solow", additive manufacturing, agricultural Revolution, Black Swan, Bretton Woods, business cycle, Cass Sunstein, central bank independence, cognitive bias, conceptual framework, Corn Laws, corporate social responsibility, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, disruptive innovation, Donald Trump, full employment, George Akerlof, George Santayana, global supply chain, global village, Gunnar Myrdal, happiness index / gross national happiness, hindsight bias, Hyman Minsky, income inequality, index fund, inflation targeting, information asymmetry, Internet Archive, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, knowledge economy, labour market flexibility, loss aversion, Mark Zuckerberg, market clearing, market friction, market fundamentalism, Martin Wolf, means of production, moral hazard, paradox of thrift, Pareto efficiency, Paul Samuelson, Philip Mirowski, precariat, price anchoring, principal–agent problem, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, shareholder value, Silicon Valley, Simon Kuznets, survivorship bias, technoutopianism, The Chicago School, The Market for Lemons, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, transaction costs, transfer pricing, Vilfredo Pareto, Washington Consensus, Wolfgang Streeck, zero-sum game

These outcomes can serve as indicators of what will happen in the real world without the need for further interrogation. Network analysis studies economic networks, which are ‘webs’ whose nodes represent economic agents (individuals, firms, consumers, organisations, industries, countries, etc.) and whose links depict market interactions. This is useful for studying the rise of networks in the global supply chain. The most important networks today are programmed computer networks. System dynamics, derived from Forrester’s (1971) attempts to model the world ecosystem, take a similar approach but focus on links between aggregate variables rather than agents. These can be economic variables such as GNP or capital stock, but could also refer to physical quantities such as forested areas or oil stocks, which has made this technique particularly popular in ecological economics.


pages: 329 words: 85,471

The Locavore's Dilemma by Pierre Desrochers, Hiroko Shimizu

air freight, back-to-the-land, British Empire, Columbian Exchange, Community Supported Agriculture, creative destruction, edge city, Edward Glaeser, food miles, Food sovereignty, global supply chain, intermodal, invention of agriculture, inventory management, invisible hand, Jane Jacobs, land tenure, megacity, moral hazard, mortgage debt, oil shale / tar sands, oil shock, peak oil, planetary scale, profit motive, refrigerator car, Steven Pinker, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, Upton Sinclair, urban sprawl

Globally-imported ingenious agricultural heritage systems Glaeser, Edward Global food supply chain history of human body transformations and initiatives for local Globalization critics of of food supply chain Globally-imported ingenious agricultural heritage systems (GIAHS) Gould, David Government food purchasing intervention leaders managed food and food security run reserves Gráda, Cormac Ó Grades (food) Graff, Gordon Grain(table) Battle for Grain ( ) government-purchased producing states reserves Grapes Great grandmother Great Leap Forward Greater Toronto Green cities Green peas, ripening periods Greenbelt Greenhouse gas emissions air freight consumer behavior and production transportation seasonality and storage transportation mode load Gros Michel bananas Gross Domestic Product (GDP) Haiti Han China Hardy, Thomas Harrison, Harry Harte, William Hawaii Hayes, Peter Health Healthy, Hunger-Free Kids Act Height nutrition and Herbal remedies Herbert, Claude-Jacques High-yield agriculture History, of food agriculture global supply chain of government intervention local food initiatives meatpacking Hitier, Henri Hobby gardening Hobson, John Atkinson Hoefner, Ferd Holden, Patrick Homogecene Hongerwinter 1944–1945 Hoover, Herbert Horse Association of America Howe, Frederic Clemson Huber, Peter W. Human body agribusiness and changing evolution of Human intellect Hundred Years War Hunger See also Famine; Food shortage Hunter, William Wilson Hurst, Blake Hybridization Imperfections Imports rice urbanization and India Initiatives, local food economic depression and history of support wartime(photo) Inner cities Innovation Integrated Regional Information Networks Intermediaries Invasive species Invisible hand Irish potato famine Jacks, Graham Vernon Jacobs, Jane Japan famine in World War II and Jefferson, Lorian P.


pages: 262 words: 83,548

The End of Growth by Jeff Rubin

Ayatollah Khomeini, Bakken shale, banking crisis, Berlin Wall, British Empire, business cycle, call centre, carbon footprint, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, decarbonisation, deglobalization, energy security, eurozone crisis, Exxon Valdez, Fall of the Berlin Wall, fiat currency, flex fuel, full employment, ghettoisation, global supply chain, Hans Island, happiness index / gross national happiness, housing crisis, hydraulic fracturing, illegal immigration, income per capita, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, Kickstarter, McMansion, Monroe Doctrine, moral hazard, new economy, Occupy movement, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, quantitative easing, race to the bottom, reserve currency, Ronald Reagan, South China Sea, sovereign wealth fund, The Chicago School, The Death and Life of Great American Cities, Thomas Malthus, Thorstein Veblen, too big to fail, uranium enrichment, urban planning, urban sprawl, women in the workforce, working poor, Yom Kippur War, zero-sum game

In my first book, Why Your World Is About to Get a Whole Lot Smaller, I detailed how soaring fuel prices will change the dynamics of international trade by dramatically increasing transoceanic transport costs. In a world of triple-digit oil prices, distance costs money, pure and simple. Connecting cheap labor in Asia with rich consumers in North America makes all kinds of economic sense when oil is $20 a barrel. But when oil prices escalate, it’s less profitable to ship most goods across the Pacific. Changes in transport costs are radically rerouting global supply chains, bringing many of them much closer to home. Hauling iron ore from Brazil to feed Chinese steel factories and then shipping the finished product back across the Pacific to North America isn’t economically viable when oil prices are trading in the triple-digit range. Instead, we could see iron ore from Labrador loaded on trains and shipped to factories in Rust Belt cities such as Pittsburgh, Cleveland or Hamilton, Ontario.


pages: 270 words: 79,992

The End of Big: How the Internet Makes David the New Goliath by Nicco Mele

4chan, A Declaration of the Independence of Cyberspace, Airbnb, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, Apple's 1984 Super Bowl advert, barriers to entry, Berlin Wall, big-box store, bitcoin, business climate, call centre, Cass Sunstein, centralized clearinghouse, Chelsea Manning, citizen journalism, cloud computing, collaborative consumption, collaborative editing, commoditize, creative destruction, crony capitalism, cross-subsidies, crowdsourcing, David Brooks, death of newspapers, disruptive innovation, Donald Trump, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, Exxon Valdez, Fall of the Berlin Wall, Filter Bubble, Firefox, global supply chain, Google Chrome, Gordon Gekko, Hacker Ethic, Jaron Lanier, Jeff Bezos, jimmy wales, John Markoff, Julian Assange, Kevin Kelly, Khan Academy, Kickstarter, Lean Startup, Mark Zuckerberg, minimum viable product, Mitch Kapor, Mohammed Bouazizi, Mother of all demos, Narrative Science, new economy, Occupy movement, old-boy network, peer-to-peer, period drama, Peter Thiel, pirate software, publication bias, Robert Metcalfe, Ronald Reagan, Ronald Reagan: Tear down this wall, sharing economy, Silicon Valley, Skype, social web, Steve Jobs, Steve Wozniak, Stewart Brand, Stuxnet, Ted Nelson, Telecommunications Act of 1996, telemarketer, The Wisdom of Crowds, transaction costs, uranium enrichment, Whole Earth Catalog, WikiLeaks, Zipcar

“I’m like an old lady in a chair, catching up on podcasts, watching old Hitchcock shows. I will do it for 13 hours a day.” And even after all those hours knitting, she is constantly sketching new designs or trading e-mail messages with 50 or more customers a day.34 I spoke with Maria Thomas, the former CEO of Etsy. She agrees that the promise of Etsy was to encourage “local living economies,” but she also noted the critical role of the global supply chain for most of the small businesses to be successful. Knitting scarves is possible because the wool might be grown on sheep in Lubbock, Texas, but shipped to China for processing and dye, and then shipped back to New York to be sold in a store.35 But even so, the rise of crafting requires businesses to stay small. If you’re knitting each scarf by hand, you’re not going to be able to sell an infinite number of them.


pages: 297 words: 84,009

Big Business: A Love Letter to an American Anti-Hero by Tyler Cowen

23andMe, Affordable Care Act / Obamacare, augmented reality, barriers to entry, Bernie Sanders, bitcoin, blockchain, Bretton Woods, cloud computing, cognitive dissonance, corporate governance, corporate social responsibility, correlation coefficient, creative destruction, crony capitalism, cryptocurrency, dark matter, David Brooks, David Graeber, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, experimental economics, Filter Bubble, financial innovation, financial intermediation, global reserve currency, global supply chain, Google Glasses, income inequality, Internet of things, invisible hand, Jeff Bezos, late fees, Mark Zuckerberg, mobile money, money market fund, mortgage debt, Network effects, new economy, Nicholas Carr, obamacare, offshore financial centre, passive investing, payday loans, peer-to-peer lending, Peter Thiel, pre–internet, price discrimination, profit maximization, profit motive, RAND corporation, rent-seeking, reserve currency, ride hailing / ride sharing, risk tolerance, Ronald Coase, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Snapchat, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, The Nature of the Firm, Tim Cook: Apple, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, ultimatum game, WikiLeaks, women in the workforce, World Values Survey, Y Combinator

They have integrated tech into their organizations at a world-beating pace, making them more competitive and thus producing better wages for their employees. Economists sometimes speak of CEOs as arbitrary beneficiaries of a variable called “skill-biased technical change.” That phrase refers to new technologies that boost the return to skilled labor. For instance, email and smartphones allow for easier management of global supply chains at a distance, and that in turn increases the influence and eventually the compensation of many of the best managers in multinational enterprises. But skill-biased technical change does not fall from the sky; rather, it comes about because it was the vision, deeply held and tenaciously enacted, of a number of CEOs. Steve Jobs saw and decided that an iPhone could be produced in a globally integrated supply chain, finished in China, and sold to the whole world, and then he figured out the process and made it happen—with the help of a lot of workers and other CEOs, of course.


pages: 303 words: 81,071

Infinite Detail by Tim Maughan

3D printing, augmented reality, bitcoin, Buckminster Fuller, Burning Man, cognitive dissonance, friendly fire, global supply chain, Internet of things, Mason jar, off grid, Panamax, post-Panamax, ransomware, RFID, security theater, self-driving car, Skype, smart cities, South China Sea, the built environment, urban decay, urban planning

Which had been the root of huge frustration and anxiety for Simon; Rush had seen it eating him up, the usually unfazed and endlessly enthusiastic figure reduced to pacing the bridge during the day, moping in his office at night. It was, of course, the main reason for this whole elaborate mission, for the last four months they’d spent risking their lives at sea: to take a container ship halfway around the world and back up the global supply chain. It wasn’t the first time Simon had done it—he’d taken the Dymaxion up the chain at least once a year, to Rush’s knowledge—but it was the first time he’d done it since the crash. The first time he’d done it since global capitalism had collapsed, since the vast data networks that managed the ships and ports had vanished, and since the algorithms that decided what you wanted to buy and then brought it halfway around the globe from a Chinese sweatshop to the shelves of your local store had burned in the data fires along with the rest of the digital age.


pages: 308 words: 84,713

The Glass Cage: Automation and Us by Nicholas Carr

Airbnb, Airbus A320, Andy Kessler, Atul Gawande, autonomous vehicles, Bernard Ziegler, business process, call centre, Captain Sullenberger Hudson, Charles Lindbergh, Checklist Manifesto, cloud computing, computerized trading, David Brooks, deliberate practice, deskilling, digital map, Douglas Engelbart, drone strike, Elon Musk, Erik Brynjolfsson, Flash crash, Frank Gehry, Frank Levy and Richard Murnane: The New Division of Labor, Frederick Winslow Taylor, future of work, global supply chain, Google Glasses, Google Hangouts, High speed trading, indoor plumbing, industrial robot, Internet of things, Jacquard loom, James Watt: steam engine, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, knowledge worker, Lyft, Marc Andreessen, Mark Zuckerberg, means of production, natural language processing, new economy, Nicholas Carr, Norbert Wiener, Oculus Rift, pattern recognition, Peter Thiel, place-making, plutocrats, Plutocrats, profit motive, Ralph Waldo Emerson, RAND corporation, randomized controlled trial, Ray Kurzweil, recommendation engine, robot derives from the Czech word robota Czech, meaning slave, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley ideology, software is eating the world, Stephen Hawking, Steve Jobs, TaskRabbit, technoutopianism, The Wealth of Nations by Adam Smith, turn-by-turn navigation, US Airways Flight 1549, Watson beat the top human players on Jeopardy!, William Langewiesche

“March of the Machines,” 60 Minutes, CBS, January 13, 2013, cbsnews.com/8301-18560_162-57563618/are-robots-hurting-job-growth/. 26.Bernard Condon and Paul Wiseman, “Recession, Tech Kill Middle-Class Jobs,” AP, January 23, 2013, bigstory.ap.org/article/ap-impact-recession-tech-kill-middle-class-jobs. 27.Paul Wiseman and Bernard Condon, “Will Smart Machines Create a World without Work?,” AP, January 25, 2013, bigstory.ap.org/article/will-smart-machines-create-world-without-work. 28.Michael Spence, “Technology and the Unemployment Challenge,” Project Syndicate, January 15, 2013, project-syndicate.org/commentary/global-supply-chains-on-the-move-by-michael-spence. 29.See Timothy Aeppel, “Man vs. Machine, a Jobless Recovery,” Wall Street Journal, January 17, 2012. 30.Quoted in Thomas B. Edsall, “The Hollowing Out,” Campaign Stops (blog), New York Times, July 8, 2012, campaignstops.blogs.nytimes.com/2012/07/08/the-future-of-joblessness/. 31.See Lawrence V. Kenton, ed., Manufacturing Output, Productivity and Employment Implications (New York: Nova Science, 2005); and Judith Banister and George Cook, “China’s Employment and Compensation Costs in Manufacturing through 2008,” Monthly Labor Review, March 2011. 32.Tyler Cowen, “What Export-Oriented America Means,” American Interest, May/June 2012. 33.Robert Skidelsky, “The Rise of the Robots,” Project Syndicate, February 19, 2013, project-syndicate.org/commentary/the-future-of-work-in-a-world-of-automation-by-robert-skidelsky. 34.Ibid. 35.Chrystia Freeland, “China, Technology and the U.S.


pages: 305 words: 79,303

The Four: How Amazon, Apple, Facebook, and Google Divided and Conquered the World by Scott Galloway

activist fund / activist shareholder / activist investor, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Amazon Web Services, Apple II, autonomous vehicles, barriers to entry, Ben Horowitz, Bernie Sanders, big-box store, Bob Noyce, Brewster Kahle, business intelligence, California gold rush, cloud computing, commoditize, cuban missile crisis, David Brooks, disintermediation, don't be evil, Donald Trump, Elon Musk, follow your passion, future of journalism, future of work, global supply chain, Google Earth, Google Glasses, Google X / Alphabet X, Internet Archive, invisible hand, Jeff Bezos, Jony Ive, Khan Academy, longitudinal study, Lyft, Mark Zuckerberg, meta analysis, meta-analysis, Network effects, new economy, obamacare, Oculus Rift, offshore financial centre, passive income, Peter Thiel, profit motive, race to the bottom, RAND corporation, ride hailing / ride sharing, risk tolerance, Robert Mercer, Robert Shiller, Robert Shiller, Search for Extraterrestrial Intelligence, self-driving car, sentiment analysis, shareholder value, Silicon Valley, Snapchat, software is eating the world, speech recognition, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Stewart Brand, supercomputer in your pocket, Tesla Model S, Tim Cook: Apple, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, undersea cable, Whole Earth Catalog, winner-take-all economy, working poor, young professional

Iconic brand consistency is achieved by key design elements: glass—a glass pane, a cube, or cylinder as an entry, often a clear glass staircase, patented by Jobs; open space, minimal interiors, no inventory in store (products are brought out to purchase). The 492 stores, dropped into exclusive shopping districts in eighteen countries, draw more than 1 million worshippers every day.33 The Magic Kingdom only drew 20.5 million people total in 2015.34 Apple also runs a global supply chain. The components stream in, from Chinese mines, Japanese studios, and American chip fabs, to contractors’ immense manufacturing plants and settlements in multiple nations (notably, and notoriously, China), and then on to Apple stores, both brick and mortar and online. Meanwhile, the billions in earnings from the sale of these products follow their own circuitous routes back to a network of tax havens, including Ireland.


pages: 245 words: 83,272

Artificial Unintelligence: How Computers Misunderstand the World by Meredith Broussard

1960s counterculture, A Declaration of the Independence of Cyberspace, Ada Lovelace, AI winter, Airbnb, Amazon Web Services, autonomous vehicles, availability heuristic, barriers to entry, Bernie Sanders, bitcoin, Buckminster Fuller, Chris Urmson, Clayton Christensen, cloud computing, cognitive bias, complexity theory, computer vision, crowdsourcing, Danny Hillis, DARPA: Urban Challenge, digital map, disruptive innovation, Donald Trump, Douglas Engelbart, easy for humans, difficult for computers, Electric Kool-Aid Acid Test, Elon Musk, Firefox, gig economy, global supply chain, Google Glasses, Google X / Alphabet X, Hacker Ethic, Jaron Lanier, Jeff Bezos, John von Neumann, Joi Ito, Joseph-Marie Jacquard, life extension, Lyft, Mark Zuckerberg, mass incarceration, Minecraft, minimum viable product, Mother of all demos, move fast and break things, move fast and break things, Nate Silver, natural language processing, PageRank, payday loans, paypal mafia, performance metric, Peter Thiel, price discrimination, Ray Kurzweil, ride hailing / ride sharing, Ross Ulbricht, Saturday Night Live, school choice, self-driving car, Silicon Valley, speech recognition, statistical model, Steve Jobs, Steven Levy, Stewart Brand, Tesla Model S, the High Line, The Signal and the Noise by Nate Silver, theory of mind, Travis Kalanick, Turing test, Uber for X, uber lyft, Watson beat the top human players on Jeopardy!, Whole Earth Catalog, women in the workforce

I grabbed her hand and pulled her upstairs. She tinkered with the robot for a little bit, looking at the directions and fiddling with the wiring and turning the switch on and off a few times. “It’s not working,” she said finally. “Why not?” I asked. She could have just told me that the motor was broken, but my mother believed in complete explanations. She told me that the motor was broken, and then she also explained global supply chains and assembly lines and reminded me that I knew how factories worked because I liked to watch the videos on Sesame Street featuring huge industrial machines making packages of crayons. “Things can go wrong when you make things,” she explained. “Something went wrong when they made this motor, and it ended up in your kit anyway, and now we’re going to get one that works.” We called the Erector hotline number printed on the instructions, and the nice people at the toy company sent us a new motor in the mail.


The Ages of Globalization by Jeffrey D. Sachs

Admiral Zheng, British Empire, Cape to Cairo, colonial rule, Columbian Exchange, Commentariolus, coronavirus, COVID-19, Covid-19, cuban missile crisis, decarbonisation, demographic transition, Deng Xiaoping, domestication of the camel, Donald Trump, en.wikipedia.org, endogenous growth, European colonialism, global supply chain, greed is good, income per capita, invention of agriculture, invention of gunpowder, invention of movable type, invention of the steam engine, invisible hand, Isaac Newton, James Watt: steam engine, job automation, John von Neumann, joint-stock company, Louis Pasteur, low skilled workers, mass immigration, Nikolai Kondratiev, out of africa, packet switching, Pax Mongolica, precision agriculture, profit maximization, profit motive, purchasing power parity, South China Sea, spinning jenny, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, trade route, transatlantic slave trade, Turing machine, Turing test, urban planning, Watson beat the top human players on Jeopardy!, wikimedia commons

In total, an estimated 14 million Africans were carried as slaves during this period. This was truly a grim and horrific stage of global capitalism. The cruelty that accompanied the development of the modern world economy must not be forgotten, because that cruelty shows up in other ways today; human trafficking is one of the greatest examples, which also continues in the form of bonded labor and child labor as part of global supply chains. Humanity is not done with the horrific abuse of others in pursuit of greed and profit. Feeding Europe’s Factories: Cotton The British and Dutch East India companies may rightly be considered the first corporations of modern capitalism. As profit-driven and greed-based joint-stock companies, they set the tone and behavior for what was to come. As described by historian Sven Beckert in his book Empire of Cotton: A Global History, much of their early business in the 1600s was trade in cotton fabrics, purchased in India for sale in Africa to slave traders and in Europe to the growing urban population.


pages: 263 words: 80,594

Stolen: How to Save the World From Financialisation by Grace Blakeley

"Robert Solow", activist fund / activist shareholder / activist investor, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, basic income, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, bitcoin, Bretton Woods, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, corporate raider, credit crunch, Credit Default Swap, cryptocurrency, currency peg, David Graeber, debt deflation, decarbonisation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, fixed income, full employment, G4S, gender pay gap, gig economy, Gini coefficient, global reserve currency, global supply chain, housing crisis, Hyman Minsky, income inequality, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), Kenneth Rogoff, Kickstarter, land value tax, light touch regulation, low skilled workers, market clearing, means of production, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, neoliberal agenda, new economy, Northern Rock, offshore financial centre, paradox of thrift, payday loans, pensions crisis, Ponzi scheme, price mechanism, principal–agent problem, profit motive, quantitative easing, race to the bottom, regulatory arbitrage, reserve currency, Right to Buy, rising living standards, risk-adjusted returns, road to serfdom, savings glut, secular stagnation, shareholder value, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, the built environment, The Great Moderation, too big to fail, transfer pricing, universal basic income, Winter of Discontent, working-age population, yield curve, zero-sum game

Finance capital had returned with a vengeance, and it sought to remove all obstacles to its continued growth. But it would take a national crisis for the remnants of the post-war order finally to fall. The Political Consequences of Social Democracy Just as Bretton Woods was collapsing, the social democratic model was starting to show signs of strain.17 Bretton Woods created a global economy, with global corporations, global supply chains, and global competition. Eventually, the system became a victim of its own success. Some companies — notably the US multinationals — thrived, but many others found it harder and harder to compete with the rising industries located in Germany, China, and Japan. UK corporations in particular found themselves struggling to benefit from the new wave of globalisation, partly because sterling was pegged to the dollar at too high a level, making British exports more expensive to international consumers.18 These firms struggled to cope with increasing international competition, and by the end of the 1960s, their profits had been seriously reduced.


pages: 307 words: 87,373

The Last Job: The Bad Grandpas and the Hatton Garden Heist by Dan Bilefsky

Boris Johnson, Etonian, global supply chain, license plate recognition, urban sprawl, young professional

They decided it was better to hide at least part of it and then lie low, or at least as low as was humanly possible, given their somewhat understandable pride in their accomplishment. Tiny and easily concealed, diamonds have long been coveted by thieves seeking to move cash without being traced. Sew a ten-carat £1 million ($1.5 million) into a pair of underwear, fly out of the country, and the gem could quickly vanish into a global supply chain of millions of diamonds that extends from Hatton Garden to New York and Tel Aviv. The gang’s stash contained millions of dollars in both uncut and polished diamonds, leaving them with a few options. The uncut diamonds could be smuggled out of Britain and sent to cutting centers in Gujarat, Tel Aviv, or New York, where characteristics such as weight and size could be transformed out of all recognition.


pages: 534 words: 15,752

The Sushi Economy: Globalization and the Making of a Modern Delicacy by Sasha Issenberg

air freight, Akira Okazaki, anti-communist, barriers to entry, Bretton Woods, call centre, creative destruction, Deng Xiaoping, global supply chain, haute cuisine, means of production, Nixon shock, Saturday Night Live, Silicon Valley, special economic zone, standardized shipping container, telemarketer, trade route, urban renewal

During the travels of tuna, one sees value added and subtracted as it changes hands: Tuna begins as a natural resource, becomes a good when its quality is graded, is enhanced by expert labor when selected and prepared by a chef, and can be marketed as an experience when served at a restaurant that offers diners a moment of exotic simplicity. At each stage, players get more information about the product they own, all while diminishing its life span through further exposure to air—a delicate juggle of swapping knowledge of its worth for the ability to realize some of that value. With sushi, unlike technology or clothing or most things moved along global supply chains, the product can never sell itself. Freshness demands more. Due to nature’s fiat, every piece is different and bears no trail of ownership; by the time the actual quality of a cut of fish is known, it is sitting on somebody’s tongue, usually with a touch of soy sauce—too late for anyone to reassess its price. Sushi-grade fish can be only as good as the last person to own it says it is. The connections, then, between people who deal in fish are proxies for provenance, vouching for the thing itself.


pages: 317 words: 98,745

Black Code: Inside the Battle for Cyberspace by Ronald J. Deibert

4chan, Any sufficiently advanced technology is indistinguishable from magic, Brian Krebs, call centre, citizen journalism, cloud computing, connected car, corporate social responsibility, crowdsourcing, cuban missile crisis, data acquisition, failed state, Firefox, global supply chain, global village, Google Hangouts, Hacker Ethic, informal economy, invention of writing, Iridium satellite, jimmy wales, John Markoff, Kibera, Kickstarter, knowledge economy, low earth orbit, Marshall McLuhan, MITM: man-in-the-middle, mobile money, mutually assured destruction, Naomi Klein, new economy, Occupy movement, Panopticon Jeremy Bentham, planetary scale, rent-seeking, Ronald Reagan, Ronald Reagan: Tear down this wall, Silicon Valley, Silicon Valley startup, Skype, smart grid, South China Sea, Steven Levy, Stuxnet, Ted Kaczynski, the medium is the message, Turing test, undersea cable, We are Anonymous. We are Legion, WikiLeaks, zero day

But ingenuity in cyberspace is as bountiful and unpredictable as the individuals who go online, and for the newly connected digital natives of the global South and East operating an email scam or writing code for botnets, viruses, and malware represents an opportunity for economic advancement, a relatively safe route around structural economic inequality and mass unemployment, an avenue for tapping into global supply chains and breaking out of local poverty and political inequality. Sitting in front of a glowing monitor thousands of miles from their victims, essentially immune from the law in St. Petersburg or Rio de Janeiro, scam-ming online must feel more like a virtual crime, with very tangible monetary rewards. The speed by which new cyberspace technologies are created far outstrips the capacity of governments to regulate them.


There Is No Planet B: A Handbook for the Make or Break Years by Mike Berners-Lee

air freight, autonomous vehicles, call centre, carbon footprint, cloud computing, dematerialisation, Elon Musk, energy security, energy transition, food miles, Gini coefficient, global supply chain, global village, Hans Rosling, income inequality, Intergovernmental Panel on Climate Change (IPCC), land reform, neoliberal agenda, off grid, performance metric, profit motive, shareholder value, Silicon Valley, smart cities, Stephen Hawking, The Spirit Level, The Wealth of Nations by Adam Smith, trickle-down economics, urban planning

However, I know there is room for improvement and if you 186 9 CONCLUSION: THINKING SKILLS FOR TODAY’S WORLD have suggestions or a better list, please send them to me at Mike@TheresNoPlanetB.net. By the way, in no way am I claiming to be a master of this skill set. But it is a wish list of the stuff that I think every one of us needs to cultivate as best we can. (1) Big picture perspective. Since the problems we face are now global, our thinking needs to be global. In this book we have seen time and again how almost everything we buy and do requires a global supply chain and sends ripples around the world. We need to tune into this even though we rarely see any of it with our own eyes. We have also seen how the global system dynamics often ensure that small scale positive actions in one place are undone elsewhere unless the global perspective is properly understood. (2) Global empathy. A thousand years ago this skill might not have been needed at all. But now, our daily lives affect those of people on the other side of the world who we will never meet.


pages: 309 words: 95,495

Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe by Greg Ip

Affordable Care Act / Obamacare, Air France Flight 447, air freight, airport security, Asian financial crisis, asset-backed security, bank run, banking crisis, break the buck, Bretton Woods, business cycle, capital controls, central bank independence, cloud computing, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, Daniel Kahneman / Amos Tversky, diversified portfolio, double helix, endowment effect, Exxon Valdez, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, global supply chain, hindsight bias, Hyman Minsky, Joseph Schumpeter, Kenneth Rogoff, lateral thinking, London Whale, Long Term Capital Management, market bubble, money market fund, moral hazard, Myron Scholes, Network effects, new economy, offshore financial centre, paradox of thrift, pets.com, Ponzi scheme, quantitative easing, Ralph Nader, Richard Thaler, risk tolerance, Ronald Reagan, Sam Peltzman, savings glut, technology bubble, The Great Moderation, too big to fail, transaction costs, union organizing, Unsafe at Any Speed, value at risk, William Langewiesche, zero-sum game

Science is relatively unequivocal that climate change should intensify hurricanes, worsen droughts and fires, and increase periods of intense rainfall. And as global temperatures have risen, so has the economic toll of record-breaking environmental catastrophes, from Katrina and Sandy in America to devastating wildfires in Australia in 2009 and the floods that crippled Thailand and disrupted global supply chains in the fall of 2011. But climate change could not explain Sandy’s destructive toll. After all, it wasn’t even a hurricane by the time it came ashore, having been downgraded to a “post-tropical cyclone.” The principal reason for Sandy’s devastating impact is that millions of productive, affluent people live and work in a place that is inherently dangerous. To understand this, you have to go back in time.


pages: 363 words: 94,139

Jony Ive: The Genius Behind Apple's Greatest Products by Leander Kahney

Apple II, banking crisis, British Empire, Chuck Templeton: OpenTable:, Computer Numeric Control, Dynabook, global supply chain, interchangeable parts, John Markoff, Jony Ive, Kickstarter, race to the bottom, RFID, side project, Silicon Valley, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, the built environment, thinkpad, Tim Cook: Apple

Explaining that Jony had no interest in the business side of Apple—just as he had hated the business side at Tangerine—the designer concluded, “He just wants to focus on ID.” “All I’ve ever wanted to do is design and make; it’s what I love doing,” Jony told one interviewer. “It’s great if you can find what you love to do. Finding it is one thing but then to be able to practise that and be preoccupied with that is another.”7 As the master of Apple’s global supply chain, Tim Cook was, in fact, much the logical successor. In just thirteen years, Cook had constructed a complex apparatus that allowed the company to build superb gadgets—albeit of Jony’s design—at unparalleled speed, volume, efficiency and profitability. Cook might not possess Jobs’s charisma, but he was a logistics titan who had been effectively running the company ever since Jobs had gone on his most recent medical leave.


pages: 344 words: 93,858

The Post-American World: Release 2.0 by Fareed Zakaria

affirmative action, agricultural Revolution, airport security, anti-communist, Asian financial crisis, battle of ideas, Berlin Wall, Bretton Woods, BRICs, British Empire, call centre, capital controls, central bank independence, centre right, collapse of Lehman Brothers, conceptual framework, Credit Default Swap, currency manipulation / currency intervention, delayed gratification, Deng Xiaoping, double entry bookkeeping, failed state, Fall of the Berlin Wall, financial innovation, global reserve currency, global supply chain, illegal immigration, interest rate derivative, Intergovernmental Panel on Climate Change (IPCC), knowledge economy, Mahatma Gandhi, Martin Wolf, mutually assured destruction, new economy, oil shock, open economy, out of africa, Parag Khanna, postindustrial economy, purchasing power parity, race to the bottom, reserve currency, Ronald Reagan, Silicon Valley, Silicon Valley startup, South China Sea, Steven Pinker, The Great Moderation, Thomas L Friedman, Thomas Malthus, trade route, Washington Consensus, working-age population, young professional, zero-sum game

It employs 2.1 million people, more than GM, Ford, GE, and IBM put together. It is legendary for its efficient—some would say ruthless—efforts to get the lowest price possible for its customers. To that end, it has adeptly used technology, managerial innovation, and, perhaps most significantly, low-cost manufacturers. Walmart imports about $27 billion worth of goods from China each year. The vast majority of its foreign suppliers are there. Walmart’s global supply chain is really a China supply chain. China has also pursued a distinctly open trade and investment policy. For this among many reasons, it is not the new Japan. Beijing has not adopted the Japanese (or South Korean) path of development, which was an export-led strategy that kept the domestic market and society closed. Instead, China opened itself up to the world. (It did this partly because it had no choice, since it lacked the domestic savings of Japan or South Korea.)


pages: 351 words: 93,982

Leading From the Emerging Future: From Ego-System to Eco-System Economies by Otto Scharmer, Katrin Kaufer

Affordable Care Act / Obamacare, agricultural Revolution, Albert Einstein, Asian financial crisis, Basel III, Berlin Wall, Branko Milanovic, cloud computing, collaborative consumption, collapse of Lehman Brothers, colonial rule, Community Supported Agriculture, creative destruction, crowdsourcing, dematerialisation, Deng Xiaoping, en.wikipedia.org, European colonialism, Fractional reserve banking, global supply chain, happiness index / gross national happiness, high net worth, housing crisis, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Johann Wolfgang von Goethe, Joseph Schumpeter, Kickstarter, market bubble, mass immigration, Mikhail Gorbachev, Mohammed Bouazizi, mutually assured destruction, Naomi Klein, new economy, offshore financial centre, peak oil, ride hailing / ride sharing, Ronald Reagan, Silicon Valley, smart grid, Steve Jobs, technology bubble, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, Washington Consensus, working poor, Zipcar

It is produced by a global web of collaborative value creation, including people with design ideas in Cupertino, California, and tens of thousands of others throughout the value chain processing the raw materials from around the world, manufacturing the core components and building blocks in Asia, assembling the components in China, and shipping and distributing the products through Apple stores in consumer markets. The ratio of work to nature is much higher than in the case of the apple that we harvest in our backyard. What gets lost in translation throughout this journey to a global division of labor is meaning. Meaning emerges from seeing one’s own connection and contribution to the whole. But being underpaid in Asia as I assemble a product for the global supply chain of, say, the iPad—what meaning and purpose can I derive from that? Very little. Today’s challenge of reinventing labor does not concern only the issues of jobs and living wages. It also concerns the issue of meaning, that is, of relinking work (jobs) with Work (passion and purpose). THE JOURNEY FROM 0.0 TO 3.0 As depicted in table 3, the role of work and labor has changed profoundly throughout history.


pages: 334 words: 93,162

This Is Your Country on Drugs: The Secret History of Getting High in America by Ryan Grim

airport security, Alexander Shulgin, anti-communist, back-to-the-land, Burning Man, crack epidemic, double helix, Douglas Engelbart, Douglas Engelbart, East Village, failed state, global supply chain, Haight Ashbury, illegal immigration, John Markoff, Kickstarter, longitudinal study, mandatory minimum, new economy, New Urbanism, PIHKAL and TIHKAL, RAND corporation, Ronald Reagan, Saturday Night Live, Steve Jobs, trade route, transatlantic slave trade, union organizing, Upton Sinclair, upwardly mobile, urban decay, women in the workforce

American drug warriors, meanwhile, treat the trade as a foreign threat that needs to be eradicated in root countries and stopped at the border. Stop growing so much coca, and we’ ll stop snorting it. But both sides miss—or ignore—a crucial fact: Americans’ involvement in the international drug market extends well beyond our appetite to get high. For decades and for a variety of reasons, the United States has been an important link in the global supply chain, protecting and often funding major drug-running organizations. The government has denied it for just as long. Anyone who believes it is labeled a conspiracy nut. And the American media, Webb discovered the hard way, can tie itself in knots trying to avoid discussing it. In the forties, Americans may well have fought a “good war,” but that doesn’t mean we waged it like angels. In its effort to defeat Hitler, Mussolini, and Tojo, the U.S. government forged relationships with a host of other criminals, some of whom would make it very difficult for the feds to succeed in another militarized conflict: the war on drugs.


pages: 366 words: 94,209

Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity by Douglas Rushkoff

activist fund / activist shareholder / activist investor, Airbnb, algorithmic trading, Amazon Mechanical Turk, Andrew Keen, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Burning Man, business process, buy and hold, buy low sell high, California gold rush, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, centralized clearinghouse, citizen journalism, clean water, cloud computing, collaborative economy, collective bargaining, colonial exploitation, Community Supported Agriculture, corporate personhood, corporate raider, creative destruction, crowdsourcing, cryptocurrency, disintermediation, diversified portfolio, Elon Musk, Erik Brynjolfsson, Ethereum, ethereum blockchain, fiat currency, Firefox, Flash crash, full employment, future of work, gig economy, Gini coefficient, global supply chain, global village, Google bus, Howard Rheingold, IBM and the Holocaust, impulse control, income inequality, index fund, iterative process, Jaron Lanier, Jeff Bezos, jimmy wales, job automation, Joseph Schumpeter, Kickstarter, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, Marshall McLuhan, means of production, medical bankruptcy, minimum viable product, Mitch Kapor, Naomi Klein, Network effects, new economy, Norbert Wiener, Oculus Rift, passive investing, payday loans, peer-to-peer lending, Peter Thiel, post-industrial society, profit motive, quantitative easing, race to the bottom, recommendation engine, reserve currency, RFID, Richard Stallman, ride hailing / ride sharing, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, social graph, software patent, Steve Jobs, TaskRabbit, The Future of Employment, trade route, transportation-network company, Turing test, Uber and Lyft, Uber for X, uber lyft, unpaid internship, Y Combinator, young professional, zero-sum game, Zipcar

But consider for a moment the sorts of activities the wealthiest Americans or most satisfied retirees engage in enthusiastically: brewing craft beers, knitting, and gardening. If there’s really not enough work to go around and there are so many extra people to employ, we can always farm in shifts. Those with a penchant for global conquest can still work overtime and become legendary by solving the real problems of our society: topsoil depletion, global warming, slave populations, and energy production, to name just a few. They can track the entire global supply chain of the products everyone is using and root out the parts that place an unfair labor burden upon certain people. (A low-cost smartphone that requires workers to dig for rare metals in dangerous mines is not a low-cost smartphone.) Some of these problems will be mitigated simply by taking our emphasis off this relentless quest to employ more people the old way. Once we’re no longer worried about growing the economy mainly to create more jobs, we will be free to consider tackling real challenges, like the poor global distribution of crucial resources and the stultifying debt of developing nations.


pages: 327 words: 88,121

The Vanishing Neighbor: The Transformation of American Community by Marc J. Dunkelman

Affordable Care Act / Obamacare, Albert Einstein, assortative mating, Berlin Wall, big-box store, blue-collar work, Bretton Woods, Broken windows theory, business cycle, call centre, clean water, cuban missile crisis, dark matter, David Brooks, delayed gratification, different worldview, double helix, Downton Abbey, Fall of the Berlin Wall, Filter Bubble, Francis Fukuyama: the end of history, George Santayana, Gini coefficient, glass ceiling, global supply chain, global village, helicopter parent, if you build it, they will come, impulse control, income inequality, invention of movable type, Jane Jacobs, Khyber Pass, Louis Pasteur, Marshall McLuhan, McMansion, Nate Silver, obamacare, Occupy movement, Peter Thiel, post-industrial society, Richard Florida, rolodex, Saturday Night Live, Silicon Valley, Skype, social intelligence, Stanford marshmallow experiment, Steve Jobs, telemarketer, The Chicago School, The Death and Life of Great American Cities, the medium is the message, Tyler Cowen: Great Stagnation, urban decay, urban planning, Walter Mischel, War on Poverty, women in the workforce, World Values Survey, zero-sum game

—Cassandra Bissell, my date to the 1996 Amherst Central High School prom, December 20, 2013, as posted on Facebook It is one of the great unremarked ironies that Bowling Alone was released within months of another best seller, Thomas Friedman’s The Lexus and the Olive Tree.1 Now considered a quintessential exploration of “globalization,” the New York Times columnist’s turn-of-the-twenty-first-century exposé shined a spotlight on how new information technology, global supply chains, and huge multinational corporations have integrated Americans into a new post-Cold War economic system. Though no one has seemed to notice, Friedman’s observation cut right at the heart of Putnam’s central argument. If Bowling Alone was arguing that Americans were becoming more isolated, The Lexus and the Olive Tree contended that we were actually becoming more globally connected. Putnam’s and Friedman’s books are rarely juxtaposed because their respective observations emerged from entirely different schools of literature.


Refuge: Transforming a Broken Refugee System by Alexander Betts, Paul Collier

Alvin Roth, anti-communist, centre right, charter city, corporate social responsibility, Donald Trump, failed state, Filter Bubble, global supply chain, informal economy, Kibera, mass immigration, megacity, mobile money, Mohammed Bouazizi, mutually assured destruction, open borders, Peace of Westphalia, peer-to-peer, race to the bottom, randomized controlled trial, rising living standards, risk/return, school choice, special economic zone, structural adjustment programs, trade route, urban planning, zero-sum game

In November 2015 we ourselves went public with the idea, with an article aimed at both the public-policy and business communities in the influential American policy journal Foreign Affairs. In January 2016 at Davos, the forum for global business, Queen Rania acclimatized CEOs to the idea that corporate social responsibility to refugees did not mean diverting some profits into sending blankets, it meant putting their core skills to use by integrating refugees into global supply chains. In the context of emerging business interest in solutions to the refugee crisis, a range of manufacturing company CEOs began to take notice. The formal launch of the pilot project came as part of the London pledging conference on Syrian refugees on 4 February 2016. There, both David Cameron and King Abdullah spoke about the pilot, as did CEOs, including, for example, Andy Clarke, CEO of Asda, the UK subsidiary of Walmart.


pages: 339 words: 95,270

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace by Matthew C. Klein

Albert Einstein, Asian financial crisis, asset allocation, asset-backed security, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, British Empire, business climate, business cycle, capital controls, centre right, collective bargaining, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, deglobalization, deindustrialization, Deng Xiaoping, Donald Trump, Double Irish / Dutch Sandwich, Fall of the Berlin Wall, falling living standards, financial innovation, financial repression, fixed income, full employment, George Akerlof, global supply chain, global value chain, illegal immigration, income inequality, intangible asset, invention of the telegraph, joint-stock company, land reform, Long Term Capital Management, Malcom McLean invented shipping containers, manufacturing employment, Martin Wolf, mass immigration, Mikhail Gorbachev, money market fund, mortgage debt, New Urbanism, offshore financial centre, oil shock, open economy, paradox of thrift, passive income, reserve currency, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, Scramble for Africa, sovereign wealth fund, The Nature of the Firm, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade liberalization, Wolfgang Streeck

Customs and Border Protection, “CPB Border Wait Times,” https://apps.cbp.gov/bwt/mobile.asp?action=n&pn=3800; and Statistics Canada, “Canada’s Merchandise Trade with the U.S. by State,” June 19, 2017, https://www.statcan.gc.ca/pub/13-605-x/2017001/article/14841-eng.htm. 21. Based on manufacturing value added by country according to the World Bank, https://data.worldbank.org/indicator/NV.IND.MANF.CD; Richard Baldwin, “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going,” in Global Value Chains in a Changing World, ed. Deborah K. Elms and Patrick Low (Washington, D.C.: Brookings Institution Press for the World Trade Organization, 2013); Robert C. Johnson and Guillermo Noguera, “Accounting for Intermediates: Production Sharing and Trade in Value Added,” Journal of International Economics 86, no. 2 (May 2011): 224–36; Marcel P.


pages: 402 words: 98,760

Deep Sea and Foreign Going by Rose George

Admiral Zheng, air freight, Airbus A320, Albert Einstein, bank run, cable laying ship, Captain Sullenberger Hudson, Costa Concordia, Edward Lloyd's coffeehouse, Exxon Valdez, failed state, Filipino sailors, global supply chain, Google Earth, intermodal, Jones Act, London Whale, Malacca Straits, Panamax, pattern recognition, profit maximization, Skype, trade route, UNCLOS, UNCLOS, urban planning, WikiLeaks, William Langewiesche

The box is then shipped to a foreign port that has signed up to the CSI, where foreign officials working harmoniously with US Customs identify and scan containers using ‘non-intrusive inspection equipment and radiation portal monitors’, in the words of the GAO. While the box is sailing safely onwards, updates on its progress are electronically transmitted to the United States. If further doubt remains about the level of risk it poses, upon arrival the container is screened with more non-intrusive inspection equipment and detained or set free to furnish an American home or fuel an American car. It is a beautiful vision of a safer global supply chain. For now, it is still only a vision. According to the Implementing Recommendations of the 9/11 Commission Act, enforced in 2007, a system to scan 100 per cent of all US-bound cargo had to be in place by July 2012. Six foreign ports signed up to the 100 per cent requirement, and by February 2012, five had dropped out. It was too expensive and too difficult, said Salalah, Southampton, Busan, Hong Kong and Puerto Cortés, leaving only Qasim, a port in Pakistan.


pages: 386 words: 91,913

The Elements of Power: Gadgets, Guns, and the Struggle for a Sustainable Future in the Rare Metal Age by David S. Abraham

3D printing, Airbus A320, carbon footprint, clean water, cleantech, commoditize, Deng Xiaoping, Elon Musk, en.wikipedia.org, glass ceiling, global supply chain, information retrieval, Intergovernmental Panel on Climate Change (IPCC), Internet of things, new economy, oil shale / tar sands, oil shock, reshoring, Robert Metcalfe, Ronald Reagan, Silicon Valley, South China Sea, Steve Ballmer, Steve Jobs, telemarketer, Tesla Model S, thinkpad, upwardly mobile, uranium enrichment, WikiLeaks, Y2K

But these supply lines are precarious, and our increasing global demands will soon stress them further. Our high-tech, green society is built on a wobbly foundation. Many have written about the economic and social effects of our international supply lines. Articles on abuse and mistreatment of workers in sweatshops and factories now abound in the press. Business journals examine which countries profit from the globalized supply chain of our electronic gadgets. Even coverage of the world’s electronic waste, burned in Africa and Asia, has now entered the global discussion. This book builds on those reports by examining the supply chain of the hidden rare metals that make modern life possible. These metals permeate our lives, allowing buildings to soar and our televisions to show vibrant colors. And because these metals are critical in green technology as well, they are the seeds of our sustainable futures, but, as a society, we know very little about them.


pages: 343 words: 101,563

The Uninhabitable Earth: Life After Warming by David Wallace-Wells

"Robert Solow", agricultural Revolution, Albert Einstein, anthropic principle, Asian financial crisis, augmented reality, basic income, Berlin Wall, bitcoin, British Empire, Buckminster Fuller, Burning Man, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, carbon-based life, cognitive bias, computer age, correlation does not imply causation, cryptocurrency, cuban missile crisis, decarbonisation, Donald Trump, effective altruism, Elon Musk, endowment effect, energy transition, everywhere but in the productivity statistics, failed state, fiat currency, global pandemic, global supply chain, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, Joan Didion, John Maynard Keynes: Economic Possibilities for our Grandchildren, labor-force participation, life extension, longitudinal study, Mark Zuckerberg, mass immigration, megacity, megastructure, mutually assured destruction, Naomi Klein, nuclear winter, Pearl River Delta, Peter Thiel, plutocrats, Plutocrats, postindustrial economy, quantitative easing, Ray Kurzweil, rent-seeking, ride hailing / ride sharing, Sam Altman, Silicon Valley, Skype, South China Sea, South Sea Bubble, Steven Pinker, Stewart Brand, the built environment, the scientific method, Thomas Malthus, too big to fail, universal basic income, University of East Anglia, Whole Earth Catalog, William Langewiesche, Y Combinator

As the futurist Alex Steffen has incisively put it, in a Twitter performance that functions as a “Powers of Ten” for the climate crisis, the transition from dirty electricity to clean sources is not the whole challenge. It’s just the lowest-hanging fruit: “smaller than the challenge of electrifying almost everything that uses power,” Steffen says, by which he means anything that runs on much dirtier gas engines. That task, he continues, is smaller than the challenge of reducing energy demand, which is smaller than the challenge of reinventing how goods and services are provided—given that global supply chains are built with dirty infrastructure and labor markets everywhere are still powered by dirty energy. There is also the need to get to zero emissions from all other sources—deforestation, agriculture, livestock, landfills. And the need to protect all human systems from the coming onslaught of natural disasters and extreme weather. And the need to erect a system of global government, or at least international cooperation, to coordinate such a project.


pages: 349 words: 95,972

Messy: The Power of Disorder to Transform Our Lives by Tim Harford

affirmative action, Air France Flight 447, Airbnb, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, assortative mating, Atul Gawande, autonomous vehicles, banking crisis, Barry Marshall: ulcers, Basel III, Berlin Wall, British Empire, Broken windows theory, call centre, Cass Sunstein, Chris Urmson, cloud computing, collateralized debt obligation, crowdsourcing, deindustrialization, Donald Trump, Erdős number, experimental subject, Ferguson, Missouri, Filter Bubble, Frank Gehry, game design, global supply chain, Googley, Guggenheim Bilbao, high net worth, Inbox Zero, income inequality, industrial cluster, Internet of things, Jane Jacobs, Jeff Bezos, Loebner Prize, Louis Pasteur, Marc Andreessen, Mark Zuckerberg, Menlo Park, Merlin Mann, microbiome, out of africa, Paul Erdős, Richard Thaler, Rosa Parks, self-driving car, side project, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, Steven Levy, Stewart Brand, telemarketer, the built environment, The Death and Life of Great American Cities, Turing test, urban decay, William Langewiesche

And in the summer of 2015, Amazon discovered that it was selling a magazine produced by and promoting the murderous group Daesh, better known to Westerners as ISIS.37 Embarrassing episodes are an almost unavoidable by-product of the messy way in which Amazon lets third parties hawk their goods on the Amazon website. As the designer Tim Maly comments, “Amazon isn’t a store, not really. Not in any sense that we can regularly think about stores. It’s a strange pulsing network of potential goods, global supply chains, and alien associative algorithms with the skin of a store stretched over it, so we don’t lose our minds.”38 Amazon’s experiments with third-party sellers began with Amazon auctions—“That didn’t work out very well,” admits Bezos39—and then Z-shops, and finally Marketplace. Marketplace drove Amazon’s own category managers crazy because they found themselves undercut on their own website by third-party sellers; meanwhile it leads to the never-ending risk that a third-party seller will do something embarrassing—such as sell pro-rape T-shirts—on the Amazon site, right beneath the Amazon logo.


Future Files: A Brief History of the Next 50 Years by Richard Watson

Albert Einstein, bank run, banking crisis, battle of ideas, Black Swan, call centre, carbon footprint, cashless society, citizen journalism, commoditize, computer age, computer vision, congestion charging, corporate governance, corporate social responsibility, deglobalization, digital Maoism, disintermediation, epigenetics, failed state, financial innovation, Firefox, food miles, future of work, global pandemic, global supply chain, global village, hive mind, industrial robot, invention of the telegraph, Jaron Lanier, Jeff Bezos, knowledge economy, lateral thinking, linked data, low cost airline, low skilled workers, M-Pesa, mass immigration, Northern Rock, peak oil, pensions crisis, precision agriculture, prediction markets, Ralph Nader, Ray Kurzweil, rent control, RFID, Richard Florida, self-driving car, speech recognition, telepresence, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Turing test, Victor Gruen, white flight, women in the workforce, Zipcar

Students are busy pushing organic, seasonal, slow food and food-miles agendas to catering giants such as Sodexho and Armamark Corporation. However, while these students are full of idealism for eco-eating, they (and we) are finding out the hard way the practicalities of global economics. Sourcing local ingredients from a multitude of small suppliers is time-consuming and expensive compared to hiring a single company with a global supply chain. But, like they say, principles aren’t principles until they cost time and money. 194 FUTURE FILES Buying an organic tomato in a supermarket is all very well, but if the tomato has been grown using child labor in Zimbabwe and then flown from Harare to London by a company owned by a corrupt politician it’s not ethically produced, is it? Thus sustainable agriculture will move to center stage and people will become genuinely concerned about the CO2 emissions created by their food.


pages: 323 words: 95,939

Present Shock: When Everything Happens Now by Douglas Rushkoff

algorithmic trading, Andrew Keen, bank run, Benoit Mandelbrot, big-box store, Black Swan, British Empire, Buckminster Fuller, business cycle, cashless society, citizen journalism, clockwork universe, cognitive dissonance, Credit Default Swap, crowdsourcing, Danny Hillis, disintermediation, Donald Trump, double helix, East Village, Elliott wave, European colonialism, Extropian, facts on the ground, Flash crash, game design, global pandemic, global supply chain, global village, Howard Rheingold, hypertext link, Inbox Zero, invention of agriculture, invention of hypertext, invisible hand, iterative process, John Nash: game theory, Kevin Kelly, laissez-faire capitalism, lateral thinking, Law of Accelerating Returns, loss aversion, mandelbrot fractal, Marshall McLuhan, Merlin Mann, Milgram experiment, mutually assured destruction, negative equity, Network effects, New Urbanism, Nicholas Carr, Norbert Wiener, Occupy movement, passive investing, pattern recognition, peak oil, price mechanism, prisoner's dilemma, Ralph Nelson Elliott, RAND corporation, Ray Kurzweil, recommendation engine, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Skype, social graph, South Sea Bubble, Steve Jobs, Steve Wozniak, Steven Pinker, Stewart Brand, supply-chain management, the medium is the message, The Wisdom of Crowds, theory of mind, Turing test, upwardly mobile, Whole Earth Catalog, WikiLeaks, Y2K, zero-sum game

Their business is about storing value, wagering on the future, and then using contracts to leverage present expectations against future realities. They may make a lot of money without creating any tangible value, but they do help create liquidity in markets that need it and force a bit of planning or austerity when something is going to be in short supply. However, new technologies and global supply chains are turning formerly seasonal commodities into year-round products. And consumers’ decreasing awareness of seasons is changing what we expect to find at our local market and when. This longer now of both supply and demand cycles is doing to many commodities traders what twenty-four-hour cable did to the evening news: in a world of constant flow, the ability to compress time becomes superfluous.


pages: 463 words: 105,197

Radical Markets: Uprooting Capitalism and Democracy for a Just Society by Eric Posner, E. Weyl

3D printing, activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, anti-communist, augmented reality, basic income, Berlin Wall, Bernie Sanders, Branko Milanovic, business process, buy and hold, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collective bargaining, commoditize, Corn Laws, corporate governance, crowdsourcing, cryptocurrency, Donald Trump, Elon Musk, endowment effect, Erik Brynjolfsson, Ethereum, feminist movement, financial deregulation, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, guest worker program, hydraulic fracturing, Hyperloop, illegal immigration, immigration reform, income inequality, income per capita, index fund, informal economy, information asymmetry, invisible hand, Jane Jacobs, Jaron Lanier, Jean Tirole, Joseph Schumpeter, Kenneth Arrow, labor-force participation, laissez-faire capitalism, Landlord’s Game, liberal capitalism, low skilled workers, Lyft, market bubble, market design, market friction, market fundamentalism, mass immigration, negative equity, Network effects, obamacare, offshore financial centre, open borders, Pareto efficiency, passive investing, patent troll, Paul Samuelson, performance metric, plutocrats, Plutocrats, pre–internet, random walk, randomized controlled trial, Ray Kurzweil, recommendation engine, rent-seeking, Richard Thaler, ride hailing / ride sharing, risk tolerance, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Rory Sutherland, Second Machine Age, second-price auction, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, special economic zone, spectrum auction, speech recognition, statistical model, stem cell, telepresence, Thales and the olive presses, Thales of Miletus, The Death and Life of Great American Cities, The Future of Employment, The Market for Lemons, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade route, transaction costs, trickle-down economics, Uber and Lyft, uber lyft, universal basic income, urban planning, Vanguard fund, women in the workforce, Zipcar

In a moral economy, the business owner would be run out of town. Governments try to step into the shoes of the village gossip, but the regulations and rulings their bureaucrats and judges hand down are never as responsive to local conditions as community members are. Despite these advantages, moral economies break down as the scope and scale of trade expand. We benefit from mass production and global supply chains because fixed costs of production are spread over millions of people and we can draw on diverse skills and inputs from around the world, resulting in delightful products at very low prices. But if millions of people worldwide consume a product, it is impractical for them to coordinate a boycott—except in unusual cases—if the product is hazardous or of low quality. Moreover, mass production requires merchants to trade over long distances, with strangers, and this means that personal reputation cannot ensure that contracts are kept.


The Power Surge: Energy, Opportunity, and the Battle for America's Future by Michael Levi

addicted to oil, American energy revolution, Berlin Wall, British Empire, business cycle, Carmen Reinhart, crony capitalism, deglobalization, energy security, Exxon Valdez, fixed income, full employment, global supply chain, hiring and firing, hydraulic fracturing, Induced demand, Intergovernmental Panel on Climate Change (IPCC), Kenneth Rogoff, manufacturing employment, oil shale / tar sands, oil shock, peak oil, RAND corporation, Ronald Reagan, Silicon Valley, South China Sea

BP, BP Statistical Review of World Energy 2012 (London: BP, June 2012). NOTES FOR PAGES 134–138 • 237 82. Daniel J. Cordier, “Mineral Commodity Summaries, U.S. Geological Survey (USGS),” January 2012, minerals.usgs.gov/minerals/pubs/commodity/rare_earths/mcs-2012-raree.pdf. 83. For information regarding Canada, see Cordier, “Mineral Commodity Summaries.” 84. Marc Humphries, “Rare Earth Elements: The Global Supply Chain,” Washington, D.C., Congressional Research Service, June 8, 2012. 85. Michael Allan McCrae, “Substitution Hurts Rare Earth Demand,” October 2, 2011, http://www.mining.com/substition-hurts-rare-earth-demand/. 86. Lee Levkowitz and Nathan Beauchamp-Mustafaga, “China’s Rare Earths Industry and Its Role in the International Market,” Washington, D.C., U.S.-China Economic and Security Review Commission, November 3, 2010, 7. 87.


pages: 346 words: 97,330

Ghost Work: How to Stop Silicon Valley From Building a New Global Underclass by Mary L. Gray, Siddharth Suri

Affordable Care Act / Obamacare, Amazon Mechanical Turk, augmented reality, autonomous vehicles, barriers to entry, basic income, big-box store, bitcoin, blue-collar work, business process, business process outsourcing, call centre, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, collaborative consumption, collective bargaining, computer vision, corporate social responsibility, crowdsourcing, data is the new oil, deindustrialization, deskilling, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, en.wikipedia.org, equal pay for equal work, Erik Brynjolfsson, financial independence, Frank Levy and Richard Murnane: The New Division of Labor, future of work, gig economy, glass ceiling, global supply chain, hiring and firing, ImageNet competition, industrial robot, informal economy, information asymmetry, Jeff Bezos, job automation, knowledge economy, low skilled workers, low-wage service sector, market friction, Mars Rover, natural language processing, new economy, passive income, pattern recognition, post-materialism, post-work, race to the bottom, Rana Plaza, recommendation engine, ride hailing / ride sharing, Ronald Coase, Second Machine Age, sentiment analysis, sharing economy, Shoshana Zuboff, side project, Silicon Valley, Silicon Valley startup, Skype, software as a service, speech recognition, spinning jenny, Stephen Hawking, The Future of Employment, The Nature of the Firm, transaction costs, two-sided market, union organizing, universal basic income, Vilfredo Pareto, women in the workforce, Works Progress Administration, Y Combinator

Large multinationals based in the Global North, like British Airways, carved up and handed over chunks of their business operations to small firms in their English-speaking former colonies in the Global South. By doing so, they shed the obligations, costs, and worker safety nets that accompany traditional employment classifications. Nation-states like India sweetened the deal for conglomerates with state-funded expansion of global satellite systems and tax-free IT industrial parks. These new links in the global supply chain hired and fired locals at will to process everything from airline schedules and insurance audits to full-time employees’ paychecks. India’s economic liberalization, in 1991, included the development of the Software Technology Parks of India (STPI) in every major city in the country.38 Finance minister Manmohan Singh, a Cambridge- and Oxford-trained economist who would later be prime minister, argued that India’s socialist economy, long propped up by its trading partner the Soviet Union, would need to liberalize and to deregulate its markets to survive the fall of the Iron Curtain.


pages: 330 words: 99,044

Reimagining Capitalism in a World on Fire by Rebecca Henderson

Airbnb, asset allocation, Berlin Wall, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, collaborative economy, collective bargaining, commoditize, corporate governance, corporate social responsibility, crony capitalism, dark matter, decarbonisation, disruptive innovation, double entry bookkeeping, Elon Musk, Erik Brynjolfsson, Exxon Valdez, Fall of the Berlin Wall, family office, fixed income, George Akerlof, Gini coefficient, global supply chain, greed is good, Hans Rosling, Howard Zinn, Hyman Minsky, income inequality, index fund, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Kickstarter, Lyft, Mark Zuckerberg, means of production, meta analysis, meta-analysis, microcredit, mittelstand, Mont Pelerin Society, Nelson Mandela, passive investing, Paul Samuelson, Philip Mirowski, profit maximization, race to the bottom, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, sovereign wealth fund, Steven Pinker, stocks for the long run, Tim Cook: Apple, total factor productivity, Toyota Production System, uber lyft, urban planning, Washington Consensus, working-age population, Zipcar

One study, for example, analyzed the effectiveness of private sector regulation in the apparel and electronics industries. It drew on five years of research, more than 700 interviews, visits to 120 factories, and extensive quantitative data.57 The author concluded that while there was much that could be done, private sector compliance programs were unlikely to solve the full set of labor problems in the global supply chain. In his words: After more than a decade of concerted efforts by global brands and labor rights NGOs alike, private compliance programs appear largely unable to deliver on their promise of sustained improvements in labor standards.… Compliance efforts have delivered some improvements in working conditions… (but) these improvements seem to have hit a ceiling: basic improvements have been achieved in some areas (e.g.: health and safety) but not in others (e.g. freedom of association, excessive working hours).


pages: 493 words: 98,982

The Tyranny of Merit: What’s Become of the Common Good? by Michael J. Sandel

affirmative action, Affordable Care Act / Obamacare, anti-communist, Berlin Wall, Bernie Sanders, Boris Johnson, Capital in the Twenty-First Century by Thomas Piketty, centre right, coronavirus, COVID-19, Credit Default Swap, Deng Xiaoping, Donald Trump, ending welfare as we know it, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, global supply chain, helicopter parent, High speed trading, immigration reform, income inequality, Khan Academy, laissez-faire capitalism, meta analysis, meta-analysis, Nate Silver, new economy, obamacare, Occupy movement, plutocrats, Plutocrats, Ronald Reagan, smart grid, Steve Jobs, Steven Levy, the market place, The Wealth of Nations by Adam Smith, Washington Consensus

Only insofar as we depend on others, and recognize our dependence, do we have reason to appreciate their contributions to our collective well-being. This requires a sense of community sufficiently robust to enable citizens to say, and to believe, that “we are all in this together”—not as a ritual incantation in times of crisis, but as a plausible description of our everyday lives. Over the past four decades, market-driven globalization and the meritocratic conception of success, taken together, have unraveled these moral ties. Global supply chains, capital flows, and the cosmopolitan identities they fostered made us less reliant on our fellow citizens, less grateful for the work they do, and less open to the claims of solidarity. Meritocratic sorting taught us that our success is our own doing, and so eroded our sense of indebtedness. We are now in the midst of the angry whirlwind this unraveling has produced. To renew the dignity of work, we must repair the social bonds the age of merit has undone.


pages: 903 words: 235,753

The Stack: On Software and Sovereignty by Benjamin H. Bratton

1960s counterculture, 3D printing, 4chan, Ada Lovelace, additive manufacturing, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, algorithmic trading, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, basic income, Benevolent Dictator For Life (BDFL), Berlin Wall, bioinformatics, bitcoin, blockchain, Buckminster Fuller, Burning Man, call centre, carbon footprint, carbon-based life, Cass Sunstein, Celebration, Florida, charter city, clean water, cloud computing, connected car, corporate governance, crowdsourcing, cryptocurrency, dark matter, David Graeber, deglobalization, dematerialisation, disintermediation, distributed generation, don't be evil, Douglas Engelbart, Douglas Engelbart, Edward Snowden, Elon Musk, en.wikipedia.org, Eratosthenes, Ethereum, ethereum blockchain, facts on the ground, Flash crash, Frank Gehry, Frederick Winslow Taylor, future of work, Georg Cantor, gig economy, global supply chain, Google Earth, Google Glasses, Guggenheim Bilbao, High speed trading, Hyperloop, illegal immigration, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invisible hand, Jacob Appelbaum, Jaron Lanier, Joan Didion, John Markoff, Joi Ito, Jony Ive, Julian Assange, Khan Academy, liberal capitalism, lifelogging, linked data, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, Masdar, McMansion, means of production, megacity, megastructure, Menlo Park, Minecraft, MITM: man-in-the-middle, Monroe Doctrine, Network effects, new economy, offshore financial centre, oil shale / tar sands, packet switching, PageRank, pattern recognition, peak oil, peer-to-peer, performance metric, personalized medicine, Peter Eisenman, Peter Thiel, phenotype, Philip Mirowski, Pierre-Simon Laplace, place-making, planetary scale, RAND corporation, recommendation engine, reserve currency, RFID, Robert Bork, Sand Hill Road, self-driving car, semantic web, sharing economy, Silicon Valley, Silicon Valley ideology, Slavoj Žižek, smart cities, smart grid, smart meter, social graph, software studies, South China Sea, sovereign wealth fund, special economic zone, spectrum auction, Startup school, statistical arbitrage, Steve Jobs, Steven Levy, Stewart Brand, Stuxnet, Superbowl ad, supply-chain management, supply-chain management software, TaskRabbit, the built environment, The Chicago School, the scientific method, Torches of Freedom, transaction costs, Turing complete, Turing machine, Turing test, undersea cable, universal basic income, urban planning, Vernor Vinge, Washington Consensus, web application, Westphalian system, WikiLeaks, working poor, Y Combinator

This “thing” is ultimately indistinguishable from (if not reducible to) the traces that it produces about itself and its various relations with the world that brought it into being.16 The SPIME is then a kind of meta-diagram that precedes the object's manufacture, couches its real physical life in the world, and outlasts its recycling; it is the “thing” defined as an artificial temporal instance of digital-physical relations from beginning to end. The politics of the SPIME motivates interest in making global supply chains deeply transparent, and in principle more accountable and sustainable. The hope is that if any interested User can “read” the complete biography of a thing, measure all of the conditions of its appearance, use, and disappearance now captured as extensible metadata, then the politics of its chemical and mineral origins (as discussed in Earth chapter) or factory labor conditions, or nutritional authenticity, or post-use death cycle might become more legible currencies of everyday material culture. From other highly controlled perspectives, such transparencies are common in global supply chains but are guarded proprietary sources of competitive information, not public platforms (see the discussion in the Cloud chapter on Amazon and Walmart).


pages: 358 words: 106,729

Fault Lines: How Hidden Fractures Still Threaten the World Economy by Raghuram Rajan

accounting loophole / creative accounting, Andrei Shleifer, Asian financial crisis, asset-backed security, assortative mating, bank run, barriers to entry, Bernie Madoff, Bretton Woods, business climate, business cycle, Clayton Christensen, clean water, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency manipulation / currency intervention, diversification, Edward Glaeser, financial innovation, fixed income, floating exchange rates, full employment, global supply chain, Goldman Sachs: Vampire Squid, illegal immigration, implied volatility, income inequality, index fund, interest rate swap, Joseph Schumpeter, Kenneth Rogoff, knowledge worker, labor-force participation, Long Term Capital Management, longitudinal study, market bubble, Martin Wolf, medical malpractice, microcredit, money market fund, moral hazard, new economy, Northern Rock, offshore financial centre, open economy, price stability, profit motive, Real Time Gross Settlement, Richard Florida, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, school vouchers, short selling, sovereign wealth fund, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, upwardly mobile, Vanguard fund, women in the workforce, World Values Survey

And the public’s anxiety gives them the license to bring out all their pet projects, all the favors to special interests, and all the schemes their ideological leanings and political connections predispose them to. Similarly, as we have seen, the Federal Reserve, though ostensibly independent, has a very difficult task. It is extremely hard to ensure rapid job growth in an integrated, innovative economy where firms use recessions to refocus on becoming more productive or to strengthen their global supply chains, shifting jobs elsewhere. Moreover, the new technologies employed in hiring allow firms the luxury of waiting to fill positions. The sustained easy monetary policy that is maintained while jobs are still scarce has the effect of increasing risk taking and inflating asset-price bubbles, which again weaken the fabric of the economy over the longer term. If the United States cannot tolerate longer bouts of unemployment, but those bouts are here to stay, we risk going from bubble to bubble as the Federal Reserve is pressured to do the impossible and create jobs where none are forthcoming.


pages: 387 words: 110,820

Cheap: The High Cost of Discount Culture by Ellen Ruppel Shell

barriers to entry, Berlin Wall, big-box store, business cycle, cognitive dissonance, computer age, creative destruction, Daniel Kahneman / Amos Tversky, delayed gratification, deskilling, Donald Trump, Edward Glaeser, fear of failure, Ford paid five dollars a day, Frederick Winslow Taylor, George Akerlof, global supply chain, global village, Howard Zinn, income inequality, interchangeable parts, inventory management, invisible hand, James Watt: steam engine, Joseph Schumpeter, Just-in-time delivery, knowledge economy, loss aversion, market design, means of production, mental accounting, Monkeys Reject Unequal Pay, Pearl River Delta, Ponzi scheme, price anchoring, price discrimination, race to the bottom, Richard Thaler, Ronald Reagan, side project, Steve Jobs, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, traveling salesman, ultimatum game, Victor Gruen, washing machines reduced drudgery, working poor, yield management, zero-sum game

Siva Yam, president of the U.S.-China Chamber of Commerce, summed matters up with some reluctance “As long as consumers are looking for the lowest possible costs,” he said, “[regulations are] not going to have a long-term impact.” ROUGHLY 25 PERCENT of the global workforce is now Chinese. Given such enormous firepower, China inevitably sets the norm for wages and working standards in the global supply chain. American corporate interests have chipped away at those standards and wages in order to maximize profits and influence, and to serve their shareholders. The chronic disregard for workers’ rights in China’s foreign-invested private sector threatens wages and working conditions around the globe, including the hard-won gains of American workers. Labor scholar Robert Bruno, a political economist at the University of Illinois, has observed that most Americans tend not to think of themselves as “workers.”


pages: 445 words: 105,255

Radical Abundance: How a Revolution in Nanotechnology Will Change Civilization by K. Eric Drexler

3D printing, additive manufacturing, agricultural Revolution, Bill Joy: nanobots, Brownian motion, carbon footprint, Cass Sunstein, conceptual framework, continuation of politics by other means, crowdsourcing, dark matter, double helix, failed state, global supply chain, industrial robot, iterative process, Mars Rover, means of production, Menlo Park, mutually assured destruction, New Journalism, performance metric, reversible computing, Richard Feynman, Silicon Valley, South China Sea, Thomas Malthus, V2 rocket, Vannevar Bush, zero-sum game

As for mining, APM naturally consumes and produces a different mix of materials (no need for the iron and chromium in stainless steel, no need for lead and tin in solder) and as it happens, the most useful elements—including carbon, nitrogen, oxygen, and silicon—are not at all scarce. On grounds of performance and cost, even common structural materials will be subject to widespread displacement, and with them, most mines. (Chapter 11 explores questions of APM-based product performance, cost, and resource requirements in greater depth.) Today, trade builds global supply chains that lead from mines and wells to smelters and refineries, to materials processing plants, to networks of factories that shape and assemble components to make final products. As we will see, with APM-based technologies it would be natural for these long, specialized supply chains to collapse to a few steps of local production, progressing from common materials to simple chemical feedstocks; from simple feedstocks to generic, microscale building blocks; and then from generic components to an endless range of products, much as printers can be used to arrange generic pixels to form an endless range of images.


pages: 364 words: 99,897

The Industries of the Future by Alec Ross

23andMe, 3D printing, Airbnb, algorithmic trading, AltaVista, Anne Wojcicki, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, bioinformatics, bitcoin, blockchain, Brian Krebs, British Empire, business intelligence, call centre, carbon footprint, cloud computing, collaborative consumption, connected car, corporate governance, Credit Default Swap, cryptocurrency, David Brooks, disintermediation, Dissolution of the Soviet Union, distributed ledger, Edward Glaeser, Edward Snowden, en.wikipedia.org, Erik Brynjolfsson, fiat currency, future of work, global supply chain, Google X / Alphabet X, industrial robot, Internet of things, invention of the printing press, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Joi Ito, Kickstarter, knowledge economy, knowledge worker, lifelogging, litecoin, M-Pesa, Marc Andreessen, Mark Zuckerberg, Mikhail Gorbachev, mobile money, money: store of value / unit of account / medium of exchange, Nelson Mandela, new economy, offshore financial centre, open economy, Parag Khanna, paypal mafia, peer-to-peer, peer-to-peer lending, personalized medicine, Peter Thiel, precision agriculture, pre–internet, RAND corporation, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Rubik’s Cube, Satoshi Nakamoto, selective serotonin reuptake inhibitor (SSRI), self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, social graph, software as a service, special economic zone, supply-chain management, supply-chain management software, technoutopianism, The Future of Employment, Travis Kalanick, underbanked, Vernor Vinge, Watson beat the top human players on Jeopardy!, women in the workforce, Y Combinator, young professional

In response, the Kenyans created an entire banking system using mobile phones and scratch cards. Thus, by frugal innovation, the country leapfrogged over the creation of a traditional banking system, at least as it exists in much of the rest of the world. While many of the world’s economies have stagnated since the economic crisis in 2008, Africa’s have continued to grow at a fast pace. With this growth, Africans are increasingly both the founder-entrepreneurs as well as a part of global supply chains. More and more of Africa’s technology-savvy youth are entering the workforce and starting their own companies or working remotely for Asian, American, or European companies. This is changing the nature of Africa’s relationship with the rest of the world as its connections shift from being rooted in philanthropy and development aid to being rooted in business. Jeremy Johnson is one of America’s brightest young entrepreneurs.


pages: 409 words: 105,551

Team of Teams: New Rules of Engagement for a Complex World by General Stanley McChrystal, Tantum Collins, David Silverman, Chris Fussell

Airbus A320, Albert Einstein, Atul Gawande, autonomous vehicles, bank run, barriers to entry, Black Swan, butterfly effect, call centre, Captain Sullenberger Hudson, Chelsea Manning, clockwork universe, crew resource management, crowdsourcing, Edward Snowden, Flash crash, Frederick Winslow Taylor, global supply chain, Henri Poincaré, high batting average, interchangeable parts, invisible hand, Isaac Newton, Jane Jacobs, job automation, job satisfaction, John Nash: game theory, knowledge economy, Mark Zuckerberg, Mohammed Bouazizi, Nate Silver, Pierre-Simon Laplace, RAND corporation, self-driving car, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, supply-chain management, The Wealth of Nations by Adam Smith, urban sprawl, US Airways Flight 1549, WikiLeaks, zero-sum game

We might recoil today at the brutal consequences of mechanized warfare and the dehumanizing connotations of the assembly line, but the principles that undergird these systems remain firmly embedded in the way organizations of all types approach management and leadership. We still search faithfully for the one best way to do things; we still think of organizational leaders as planners, synchronizers, and coordinators—chess-player strategists responsible for overseeing interlocking troop movements, marketing initiatives, or global supply chains. The structures of our organizations reflect this ideal. Whether imbued with a “lazy worker” Theory X or a “motivated worker” Theory Y disposition, the “org charts” of most multiperson endeavors look pretty similar: a combination of specialized vertical columns (departments or divisions) and horizontal tiers that denote levels of authority, with the most powerful literally on top—the only tier that can access all columns.


pages: 380 words: 109,724

Don't Be Evil: How Big Tech Betrayed Its Founding Principles--And All of US by Rana Foroohar

"side hustle", accounting loophole / creative accounting, Airbnb, AltaVista, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, Bernie Sanders, bitcoin, book scanning, Brewster Kahle, Burning Man, call centre, cashless society, cleantech, cloud computing, cognitive dissonance, Colonization of Mars, computer age, corporate governance, creative destruction, Credit Default Swap, cryptocurrency, data is the new oil, death of newspapers, Deng Xiaoping, disintermediation, don't be evil, Donald Trump, drone strike, Edward Snowden, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Etonian, Filter Bubble, future of work, game design, gig economy, global supply chain, Gordon Gekko, greed is good, income inequality, informal economy, information asymmetry, intangible asset, Internet Archive, Internet of things, invisible hand, Jaron Lanier, Jeff Bezos, job automation, job satisfaction, Kenneth Rogoff, life extension, light touch regulation, Lyft, Mark Zuckerberg, Marshall McLuhan, Martin Wolf, Menlo Park, move fast and break things, move fast and break things, Network effects, new economy, offshore financial centre, PageRank, patent troll, paypal mafia, Peter Thiel, pets.com, price discrimination, profit maximization, race to the bottom, recommendation engine, ride hailing / ride sharing, Robert Bork, Sand Hill Road, search engine result page, self-driving car, shareholder value, sharing economy, Shoshana Zuboff, Silicon Valley, Silicon Valley startup, smart cities, Snapchat, South China Sea, sovereign wealth fund, Steve Jobs, Steven Levy, subscription business, supply-chain management, TaskRabbit, Telecommunications Act of 1996, The Chicago School, the new new thing, Tim Cook: Apple, too big to fail, Travis Kalanick, trickle-down economics, Uber and Lyft, Uber for X, uber lyft, Upton Sinclair, WikiLeaks, zero-sum game

Newspapers have essentially been in decline since the mid-1990s, when the commercial Internet took off.35 Today, over 62 percent of the U.S. population gets news from some form of social media, with Facebook being the dominant source, according to the Columbia Journalism Review. But looking at the patent issue makes it clear that there is a price to be paid for the “information wants to be free” approach in other industries as well—including the technology business itself. While the complexity of global supply chains and investments makes it tough to show clear causality between patent protection and innovation in the United States, the trend lines do not look good. According to one study, the shifts in patent regulation have cost the U.S. economy $1 trillion. Venture capital investment in biotech has been down in recent years, in part because it’s tougher to patent certain kinds of innovation. Anecdotally, I’ve spoken to many investors who have said they are considering moving money away from the United States and into Europe and Asia because of this.


The Metropolitan Revolution: How Cities and Metros Are Fixing Our Broken Politics and Fragile Economy by Bruce Katz, Jennifer Bradley

3D printing, additive manufacturing, Affordable Care Act / Obamacare, British Empire, business climate, carbon footprint, clean water, cleantech, collapse of Lehman Brothers, deindustrialization, demographic transition, desegregation, double entry bookkeeping, edge city, Edward Glaeser, global supply chain, immigration reform, income inequality, industrial cluster, intermodal, Jane Jacobs, jitney, Kickstarter, knowledge economy, lone genius, longitudinal study, Mark Zuckerberg, Masdar, megacity, Menlo Park, Moneyball by Michael Lewis explains big data, Network effects, new economy, New Urbanism, Occupy movement, place-making, postindustrial economy, purchasing power parity, race to the bottom, Richard Florida, Shenzhen was a fishing village, Silicon Valley, smart cities, smart grid, sovereign wealth fund, the built environment, The Death and Life of Great American Cities, the market place, The Spirit Level, Tony Hsieh, too big to fail, trade route, transit-oriented development, urban planning, white flight

And we have been reminded of this fact as a nation in just the past few years—that just as cities are a source of strength, they are often vulnerable to the shocks and disruptions of our modern world. When Superstorm Sandy barreled up the East Coast of the United States, making a direct hit on New York City, economic activity and commerce felt its impact all over the world. When Bangkok flooded in 2011, many global supply chains ground to a halt. Cities themselves are weakened by vulnerabilities in individual communities within the city. When one part of the city loses connection to a critical system, the stability of the entire region can be threatened. But examples of innovation happening all over the world give us good reason for optimism. In London’s rundown East End, the site of the 2012 Olympic Games, stadiums are giving way to schools, arenas are being converted into affordable housing, and thousands of new jobs are slated to come to the neighborhood.


pages: 363 words: 105,039

Sandworm: A New Era of Cyberwar and the Hunt for the Kremlin's Most Dangerous Hackers by Andy Greenberg

air freight, Airbnb, Bernie Sanders, bitcoin, blockchain, call centre, clean water, data acquisition, Donald Trump, Edward Snowden, global supply chain, hive mind, Julian Assange, Just-in-time delivery, Kickstarter, Mikhail Gorbachev, open borders, pirate software, pre–internet, profit motive, ransomware, RFID, speech recognition, Steven Levy, Stuxnet, undersea cable, uranium enrichment, Valery Gerasimov, WikiLeaks, zero day

Logistics companies whose livelihoods depend on Maersk-owned terminals weren’t all treated as well during the outage as Maersk’s customers, for instance. Jeffrey Bader, president of a Port Newark–based trucking group, the Association of Bi-State Motor Carriers, estimates that the unreimbursed cost for trucking companies and truckers alone was in the tens of millions. “It was a nightmare,” Bader said. “We lost a lot of money, and we’re angry.” The wider cost of Maersk’s disruption to the global supply chain as a whole—which depends on just-in-time delivery of products and manufacturing components—is far harder to measure. And, of course, Maersk was only one victim. Only when you start to multiply Maersk’s story—imagining the same paralysis, the same serial crises, the same grueling recovery—playing out across dozens of other NotPetya victims and countless other industries does the true scale of Russia’s cyberwar crime begin to come into focus.


EuroTragedy: A Drama in Nine Acts by Ashoka Mody

"Robert Solow", Andrei Shleifer, asset-backed security, availability heuristic, bank run, banking crisis, Basel III, Berlin Wall, book scanning, Bretton Woods, call centre, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, credit crunch, Daniel Kahneman / Amos Tversky, debt deflation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, floating exchange rates, forward guidance, George Akerlof, German hyperinflation, global supply chain, global value chain, hiring and firing, Home mortgage interest deduction, income inequality, inflation targeting, Irish property bubble, Isaac Newton, job automation, Johann Wolfgang von Goethe, Johannes Kepler, Kenneth Rogoff, Kickstarter, liberal capitalism, light touch regulation, liquidity trap, loadsamoney, London Interbank Offered Rate, Long Term Capital Management, low-wage service sector, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, mortgage tax deduction, neoliberal agenda, offshore financial centre, oil shock, open borders, pension reform, premature optimization, price stability, purchasing power parity, quantitative easing, rent-seeking, Republic of Letters, Robert Gordon, Robert Shiller, Robert Shiller, short selling, Silicon Valley, The Great Moderation, The Rise and Fall of American Growth, too big to fail, total factor productivity, trade liberalization, transaction costs, urban renewal, working-age population, Yogi Berra

Italian stocks fell by 3.3 percent; banks and insurers, who held substantial quantities of government bonds, took a special beating.47 Soon enough, another rating agency, Moody’s, placed the Italian government and banks on “review for possible downgrade.”48 All this while, global economic and financial tensions had been rising. On March 11, a monstrous earthquake and tsunami off the northern coast of Japan damaged nuclear reactors, the fallout from which threatened to cause vast additional damage. Amid the human tragedy, the Japanese link in global supply chains broke, disrupting world trade. Torsten Sløk, chief international economist at Deutsche Bank, captured the change in global mood: “the world is rapidly becoming a scarier place.”49 Starting in early April, global stock markets tumbled at a pace not seen since the days following the Lehman Brothers bankruptcy. Chinese and European growth slowed down in May.50 The US economic recovery seemed to stall; employment fell slightly in May and June, and large numbers of workers stopped looking for jobs.

The Italian economy grows at a post-​World War II low around the IMF’s estimated potential growth rate of 0.5 to 0.75 percent per year, although it sometimes seems that the OECD’s even lower projection is more realistic.5 Similarly, Portugal’s potential growth rate stays at or below 0.5 percent a year.6 Even Spain and France grow only around an average of 1 percent a year. 438   e u r o t r a g e d y For short periods, renewed world trade growth lifts eurozone GDP growth rates in a pattern that has recurred over the past 150 years (figure 10.1). However, the dividend from world trade has diminished over the years as several eurozone economies, especially those in the south, have lost competitiveness. Moreover, significant and extended pickups in world trade have become less frequent, confirming researchers’ views that the era of hyperglobalization is over.7 Global supply chains—​set up to source materials, parts, and equipment from low-​cost locations around the world—​are now largely in place. Compared with the blistering 9 percent growth rate in the pre-​global-​crisis years between 2004 and 2007, the rate of world trade growth now stays, generally, in the range of 3 to 5 percent a 5 Per capita GDP growth rate of the median euroarea country, percent 1946–1970 1920–1929 Before 1991 4 3 1971–1990 1890–1899 1999–2008 2 1991–1998 1930–1939 1 2009–2016 After 1991 0 –2 0 2 4 6 8 10 Annual average world trade growth, percent Figure 10.1.


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Exceptional People: How Migration Shaped Our World and Will Define Our Future by Ian Goldin, Geoffrey Cameron, Meera Balarajan

Admiral Zheng, agricultural Revolution, barriers to entry, Berlin Wall, Branko Milanovic, British Empire, conceptual framework, creative destruction, demographic transition, Deng Xiaoping, endogenous growth, failed state, Fall of the Berlin Wall, Gini coefficient, global pandemic, global supply chain, guest worker program, illegal immigration, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), job automation, Joseph Schumpeter, knowledge economy, labor-force participation, labour mobility, Lao Tzu, life extension, longitudinal study, low skilled workers, low-wage service sector, Malacca Straits, mass immigration, microcredit, Nelson Mandela, Network effects, new economy, New Urbanism, old age dependency ratio, open borders, out of africa, price mechanism, purchasing power parity, Richard Florida, selection bias, Silicon Valley, Silicon Valley startup, Skype, spice trade, trade route, transaction costs, transatlantic slave trade, women in the workforce, working-age population

“Network diasporas,” Kuznetsov argues, “are but the latest bridge institutions connecting developing economy insiders, with their risk mitigating knowledge and connections, to outsiders in command of technical know-how and investment capital.”103 For countries to successfully tap into their overseas expertise, there need to be conditions at home that are attractive for expatriates to return to or invest in. Migrants in a diaspora are unlikely to spontaneously fire up a flailing national economy; they are a resource that can reinforce or accelerate existing positive trends.104 India's Dynamic Diaspora Network The development of global supply chains, decentralized systems of production, and modern information technologies have facilitated the transformation of brain drain from India into “diaspora networks” that are supporting the IT sector at home. India's universities are thriving, and many of its best graduates seek out jobs in Silicon Valley, where they are supported by established professional networks for Indian nationals. It is easier to start a business in the United States, but software engineers are more plentiful and inexpensive in India, so handfuls of Indian entrepreneurs have started cross-regional companies that link Silicon Valley capital with workers living in Mumbai and Bangalore.


pages: 409 words: 118,448

An Extraordinary Time: The End of the Postwar Boom and the Return of the Ordinary Economy by Marc Levinson

affirmative action, airline deregulation, banking crisis, Big bang: deregulation of the City of London, Boycotts of Israel, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, car-free, Carmen Reinhart, central bank independence, centre right, clean water, deindustrialization, endogenous growth, falling living standards, financial deregulation, floating exchange rates, full employment, George Gilder, Gini coefficient, global supply chain, income inequality, income per capita, indoor plumbing, informal economy, intermodal, invisible hand, Kenneth Rogoff, knowledge economy, late capitalism, linear programming, manufacturing employment, new economy, Nixon shock, North Sea oil, oil shock, Paul Samuelson, pension reform, price stability, purchasing power parity, refrigerator car, Right to Buy, rising living standards, Robert Gordon, rolodex, Ronald Coase, Ronald Reagan, Simon Kuznets, statistical model, strikebreaker, structural adjustment programs, The Rise and Fall of American Growth, Thomas Malthus, total factor productivity, unorthodox policies, upwardly mobile, War on Poverty, Washington Consensus, Winter of Discontent, Wolfgang Streeck, women in the workforce, working-age population, yield curve, Yom Kippur War, zero-sum game

It accounted for three-quarters of the world’s population in 1973, as crisis enveloped Western Europe, the United States, Canada, and Japan, but only a third of the world’s output of goods and services. China, with an income per person one-twentieth that of the United States, had yet to launch the economic reforms that would turbocharge its growth in later decades. And Southeast Asia, far from being a critical link in global supply chains, seemed hopelessly crippled by war and internal violence. The Third World was connected to the international economy mainly as a source of raw materials. It supplied a scant 7 percent of the world’s exports of manufactured goods. The Third World’s explosive growth in the 1970s was fueled by the petrodollars that were causing such worry for central bankers like Gordon Richardson and Arthur Burns.


pages: 515 words: 117,501

Miracle Cure by William Rosen

Affordable Care Act / Obamacare, availability heuristic, biofilm, cognitive bias, cognitive dissonance, conceptual framework, Copley Medal, creative destruction, demographic transition, discovery of penicillin, Ernest Rutherford, experimental subject, Fellow of the Royal Society, Frederick Winslow Taylor, friendly fire, functional fixedness, germ theory of disease, global supply chain, Haber-Bosch Process, Ignaz Semmelweis: hand washing, Isaac Newton, James Watt: steam engine, Johannes Kepler, John Snow's cholera map, Joseph Schumpeter, Louis Pasteur, medical malpractice, meta analysis, meta-analysis, microbiome, New Journalism, obamacare, out of africa, pattern recognition, Pepto Bismol, randomized controlled trial, selection bias, stem cell, transcontinental railway, working poor

Miller back from the brink of death, President Barack Obama signed into law Senate Bill 1387: the Food and Drug Administration Safety and Innovation Act. The new law, yet another amendment to the original 1938 Food, Drug, and Cosmetic Act, included dozens of provisions regarding everything from a new protocol for the approval of medical devices, to the authorization of fees for users of generic and prescription pharmaceuticals, to protection of the global supply chain for finished drugs. Less well publicized, but almost certainly as important, it incorporated into the legislation a series of provisions known collectively by the acronym GAIN: Generating Antibiotic Incentives Now. Intended to increase the likelihood that pharmaceutical companies would invest in the development of antibiotics that treat serious or life-threatening conditions, GAIN offered fast-track approval for compounds that promised to combat infections, and a five-year extension of their exclusive term of patent.


pages: 411 words: 114,717

Breakout Nations: In Pursuit of the Next Economic Miracles by Ruchir Sharma

3D printing, affirmative action, Albert Einstein, American energy revolution, anti-communist, Asian financial crisis, banking crisis, Berlin Wall, BRICs, British Empire, business climate, business cycle, business process, business process outsourcing, call centre, capital controls, Carmen Reinhart, central bank independence, centre right, cloud computing, collective bargaining, colonial rule, corporate governance, creative destruction, crony capitalism, deindustrialization, demographic dividend, Deng Xiaoping, eurozone crisis, Gini coefficient, global supply chain, housing crisis, income inequality, indoor plumbing, inflation targeting, informal economy, Kenneth Rogoff, knowledge economy, labor-force participation, land reform, M-Pesa, Mahatma Gandhi, Marc Andreessen, market bubble, mass immigration, megacity, Mexican peso crisis / tequila crisis, Nelson Mandela, new economy, oil shale / tar sands, oil shock, open economy, Peter Thiel, planetary scale, quantitative easing, reserve currency, Robert Gordon, Shenzhen was a fishing village, Silicon Valley, software is eating the world, sovereign wealth fund, The Great Moderation, Thomas L Friedman, trade liberalization, Watson beat the top human players on Jeopardy!, working-age population, zero-sum game

Today U.S. manufacturers buy 15 percent of their parts and materials from emerging markets, up from 9 percent just fifteen years ago, and these connections are still growing. Trade between nations is rising much faster than income within nations. Back in 1960 every percentage point increase in global income was accompanied by a 2 percent increase in trade flows; today every percentage point increase in income is matched by a 4 percent rise in trade. The increasing integration of global supply chains is a major reason why developed and developing economies began to expand and contract in sync over the last decade. It is also why emerging markets, too, can expect a shift to more frequent downturns. If the historical record cited above is any guide, the expansion phases are likely to shorten by a half or more to around three years across the global economy. The Upside of Hard Landings Volatility may be scary, but it is not necessarily bad for long-term growth.


pages: 523 words: 111,615

The Economics of Enough: How to Run the Economy as if the Future Matters by Diane Coyle

"Robert Solow", accounting loophole / creative accounting, affirmative action, bank run, banking crisis, Berlin Wall, bonus culture, Branko Milanovic, BRICs, business cycle, call centre, Cass Sunstein, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation does not imply causation, Credit Default Swap, deindustrialization, demographic transition, Diane Coyle, different worldview, disintermediation, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Financial Instability Hypothesis, Francis Fukuyama: the end of history, George Akerlof, Gini coefficient, global supply chain, Gordon Gekko, greed is good, happiness index / gross national happiness, hedonic treadmill, Hyman Minsky, If something cannot go on forever, it will stop - Herbert Stein's Law, illegal immigration, income inequality, income per capita, industrial cluster, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, light touch regulation, low skilled workers, market bubble, market design, market fundamentalism, megacity, Network effects, new economy, night-watchman state, Northern Rock, oil shock, Pareto efficiency, principal–agent problem, profit motive, purchasing power parity, railway mania, rising living standards, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Steven Pinker, The Design of Experiments, The Fortune at the Bottom of the Pyramid, The Market for Lemons, The Myth of the Rational Market, The Spirit Level, transaction costs, transfer pricing, tulip mania, ultimatum game, University of East Anglia, web application, web of trust, winner-take-all economy, World Values Survey, zero-sum game

They have brought about a dramatic restructuring of industry and work. They’ve created the diversity of the modern city and workplace, bringing many people into contact daily with a much wider variety of others than ever used to be the case. And there are much larger geographical distances in production too, due the fact that economies have become more open to trade and investment, and that companies are more likely to be part of a global supply chain. THE CHALLENGE OF BUILDING TRUST There are, then, a number of ways in which the technology-driven structural changes in the economy have been simultaneously increasing the importance of trust or social capital and making it more fragile. At the heart of this tension is the way so many people of so many different backgrounds, expectations, and habits are now in contact with each other.


pages: 437 words: 113,173

Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global pandemic, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial cluster, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Johannes Kepler, Khan Academy, Kickstarter, low cost airline, low cost carrier, low skilled workers, Lyft, Malacca Straits, mass immigration, megacity, Mikhail Gorbachev, moral hazard, Nelson Mandela, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, Pearl River Delta, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Robert Metcalfe, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, The Future of Employment, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uber lyft, undersea cable, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day

London: Faber & Faber. 63. Ibid. 64. The Economist (2006, June 15). “When the Chain Breaks.” The Economist. Retrieved from www.economist.com. 65. For more on the Thailand case, see Goldin, Ian and Mike Mariathasan (2014), The Butterfly Defect. Princeton, NJ: Princeton University Press. 66. Chongvilaivan, Aekapol (2012). “Thailand’s 2011 Flooding: Its Impact on Direct Exports and Global Supply Chains.” ARTNeT Working Paper Series, No. 113. Retrieved from hdl.handle.net/10419/64271. 67. Thailand Board of Investment (2012). “Expertise, New Investment Keep Thai E&E Industry at the Top.” Thailand Investment Review. Retrieved from www.boi.go.th. 68. Abe, Masato and Linghe Ye (2013). “Building Resilient Supply Chains against Natural Disasters: The Cases of Japan and Thailand.” Global Business Review 14: 567. 69.


pages: 421 words: 120,332

The World in 2050: Four Forces Shaping Civilization's Northern Future by Laurence C. Smith

Bretton Woods, BRICs, business cycle, clean water, Climategate, colonial rule, deglobalization, demographic transition, Deng Xiaoping, energy security, flex fuel, G4S, global supply chain, Google Earth, guest worker program, Hans Island, hydrogen economy, ice-free Arctic, informal economy, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invisible hand, land tenure, Martin Wolf, megacity, Mikhail Gorbachev, New Urbanism, oil shale / tar sands, oil shock, peak oil, Pearl River Delta, purchasing power parity, Ronald Reagan, Ronald Reagan: Tear down this wall, side project, Silicon Valley, smart grid, sovereign wealth fund, special economic zone, standardized shipping container, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, trade route, UNCLOS, UNCLOS, urban planning, Washington Consensus, Y2K

To be sure, routes are shorter across the Arctic Ocean, but the travel speeds, owing to the danger of ice, are lower.368 If the region’s emerging regulatory framework demands that only polar-class ships be allowed in, then those vessels will cost considerably more than ordinary single-hulled ships. And how attractive will a short, unpredictable shipping season really be for today’s tightly scheduled global supply chains? What about the relative lack of emergency and port services, environmental liability for oil spills, or fees charged by Russia and Canada should they reaffirm their positions that the Northwest Passage and Northern Sea Route are not international straits?369 Might the Suez and Panama canals lower their prices in response to the new competition? There are many other factors controlling the profitability of transnational shipping lanes besides a shorter geographic route, available for an uncertain few weeks to a few months out of the year.


pages: 510 words: 120,048

Who Owns the Future? by Jaron Lanier

3D printing, 4chan, Affordable Care Act / Obamacare, Airbnb, augmented reality, automated trading system, barriers to entry, bitcoin, book scanning, Burning Man, call centre, carbon footprint, cloud computing, commoditize, computer age, crowdsourcing, David Brooks, David Graeber, delayed gratification, digital Maoism, Douglas Engelbart, en.wikipedia.org, Everything should be made as simple as possible, facts on the ground, Filter Bubble, financial deregulation, Fractional reserve banking, Francis Fukuyama: the end of history, George Akerlof, global supply chain, global village, Haight Ashbury, hive mind, if you build it, they will come, income inequality, informal economy, information asymmetry, invisible hand, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Kevin Kelly, Khan Academy, Kickstarter, Kodak vs Instagram, life extension, Long Term Capital Management, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, Metcalfe’s law, moral hazard, mutually assured destruction, Network effects, new economy, Norbert Wiener, obamacare, packet switching, Panopticon Jeremy Bentham, Peter Thiel, place-making, plutocrats, Plutocrats, Ponzi scheme, post-oil, pre–internet, race to the bottom, Ray Kurzweil, rent-seeking, reversible computing, Richard Feynman, Ronald Reagan, scientific worldview, self-driving car, side project, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, smart meter, stem cell, Steve Jobs, Steve Wozniak, Stewart Brand, Ted Nelson, The Market for Lemons, Thomas Malthus, too big to fail, trickle-down economics, Turing test, Vannevar Bush, WikiLeaks, zero-sum game

In the case of Wal-Mart, the captured population was the supply chain. Google’s true customers are the advertisers, who are captured. Wal-Mart’s customers weren’t the critical population for it to capture, however. Retail customers gradually became a little captured in some locations where retail choice was eventually reduced, but for the most part they could shop elsewhere if they were so inclined, but it was the optimization of the global supply chain through the use of punishing network effects that really empowered and enriched Wal-Mart. CHAPTER 14 Obscuring the Human Element Noticing the New Order Every tale of adventure lately seems to include a scene in which characters are attempting to crack the security of someone else’s computer. That’s the popular image of how power games are played out in the digital age, but such “cracking” is only a tactic, not a strategy.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

"Robert Solow", Airbnb, Albert Einstein, American ideology, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, laissez-faire capitalism, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak,